Belgium’s Solvay explores sale of fibre unit Acetow

Belgian chemicals company Solvay SA, is exploring the sale of its fibre business valued at around €1.4 billion ($2 billion), Bloomberg today reported, citing people with knowledge of the matter.

Goldman Sachs Group and Credit Suisse Group have been hired as advisors to the sale of Acetow, a raw material supplier for cigarette filters, the report said.

Acetow, which generates annual revenues of €658 million, has attracted interest from private-equity firms, the report added.

Acetow is a leading global producer of cellulose acetate tow for cigarette filters and cellulose acetate flakes to the manufacturing sector. Its fibres are also used in textiles and packaging for cosmetics.

It is the largest manufacturer in the CIS and South America, the second-largest in Western Europe through is five manufacturing sites in Germany, Russia, the UK France and the US. Its products are sold under the name Rhodia, Filter Tow, Ocalio and Accoya.

Brussels-based Solvay serves diversified markets, generating 90 per cent of its €9.94-billion annual revenue in activities where it is one of the top three worldwide.