Rhodia strengthens its position in the automotive emissions control market
Rhodia Silcea announced today the signature of an asset purchase agreement with W.R. Grace & Co- Conn. in the USA for their Washcoat* alumina business. Aluminas are an important component in automotive catalytic converters, and complement Rhodia’s Rare Earth product range for automotive emission control systems. This acquisition will thus strengthen the Group’s position as a key supplier to this fast growing market. The purchase price of this acquisition will be of about €15 million.
The alumina activity with net sales of around €20 million, has a production facility located in Ohio, USA, and a dedicated R&D laboratory in Maryland, USA. The business has long standing customer relationships and a strong market position in North America and Japan, with a world-wide market share of almost 25%, and it is well positioned to seize growth opportunities in Asia.
“The alumina activity will widen Rhodia’s offer for automotive emission control systems,” commented Rhodia CEO Jean-Pierre Clamadieu. He added: “This acquisition illustrates our strategy of profitable growth and development of businesses in which we enjoy solid leadership positions.”
Given the Chapter 11 bankruptcy protection under which Grace is operating, the transaction is subject to approval by the Bankruptcy Court in the USA.
The completion is expected within the next few months.
* Active components for automotive catalytic converters
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