Solutia to Acquire Southwall
Laminated glass interlayer and specialty film producer, Solutia Inc., is acquiring Southwall Technologies Inc., the manufacturer of a Heat Mirror film used in insulating glass and a variety of window film products. The transaction is valued at approximately $113 million.
"This acquisition positions Solutia as the world leader in advanced sputtering technology, combining the industry's leading commercial expertise with next-generation innovation capabilities to provide advanced film solutions to the premium window film and electronics markets," says Jeffry N. Quinn, Solutia chairman, president and CEO. "Our growth strategy remains focused on enhancing our portfolio through synergistic bolt-on acquisitions that allow Solutia to better serve high-growth markets and support the success of our existing businesses. This is just one component of our strategy to put our strong cash flow to work to create value for our shareholders."
"We look forward to realizing the potential of Southwall's portfolio of energy efficiency solutions as we combine our innovation in sputtering technology with Solutia's commercial and market expertise," says Dennis Capovilla, Southwall president and CEO. "Together we will focus on the delivery of next-generation films to our customers that achieve unmatched levels of solar performance and optical clarity."
St. Louis-based Solution reports that the acquisition will secure access to Southwall's proprietary XIR technology, a key base material for Solutia's high-growth V-Kool premium aftermarket window films. The purchase of Palo Alto, Calif.-based Southwall also adds state-of-the-art manufacturing capacity and proprietary capabilities to support the fast-growing demand for high-tech films for the electronics market and positions Solutia to provide a broader range of product solutions, offiicals note as well. This includes a new product offering in which transparent film is encapsulated between Saflex polyvinyl butyral interlayers to form a protective barrier in laminated glass against the harmful effects of the sun.
The deal is expected to be completed by the end of the year.