Solutia, FMC agree to $255 million sale of joint venture Astaris

By Caroline Salls

Pittsburgh, Sept. 1 - Solutia Inc. and FMC Corp. have agreed to sell Astaris, their 50/50 specialty phosphates joint venture, to Israel Chemicals Ltd. for $255 million, according to a company news release.

Solutia will use the proceeds of the Astaris sale to partially pay down the term loan portion of its debtor-in-possession financing, the release said.

The transaction is subject to approval by the U.S. Bankruptcy Court for the Southern District of New York and regulatory clearance.

"The Astaris divestiture is the latest step forward in a key component of our reorganization strategy: building a portfolio of high-potential businesses to form the core of reorganized Solutia," Solutia senior vice president and chief financial officer Jim Sullivan said in the release.

"While Astaris has benefited greatly from restructuring actions taken during 2004, it is a non-core asset to Solutia that is a better strategic fit for a company such as ICL."

Solutia, a St. Louis-based manufacturer and provider of performance films, specialty chemicals and an integrated family of nylon products, filed for bankruptcy on Dec. 17, 2003. Its Chapter 11 case number is 03-17949.

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