Solutia agrees to purchase Akzo Nobel's stake in Flexsys joint venture

By Jennifer Lanning Drey

Portland, Ore., Dec. 15 - Solutia Inc. has agreed to purchase Akzo Nobel NV's stake in Flexsys, a 50/50 joint venture between Akzo Nobel and Solutia, as well as Akzo Nobel's Crystex business in Japan, according to a company news release.

Solutia said it expects to fund the purchase through a combination of sources, including a portion of the new $1.075 billion debtor-in-possession financing package announced by the company on Friday.

The company did not announce the purchase price of the proposed transaction, which must be approved by the U.S. Bankruptcy Court and is subject to the completion of the definitive purchase agreement and other regulatory approvals and closing conditions.

Flexsys is a rubber chemicals business that had sales of roughly $600 million in 2005, according to the release.

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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