Solutia Reaches Agreement to Sell Dequest Business
ST. LOUIS, March 12, 2007 (PRIME NEWSWIRE) -- Solutia Inc. (OTCBB:SOLUQ), today announced that it has reached a definitive agreement to sell Dequest(r), its water treatment phosphonates business. Under the terms of the agreement, Thermphos Trading GmbH will purchase the assets and assume certain of the liabilities of the Dequest business for $67 million in cash, subject to a working capital adjustment. The parties will also enter into a lease and operating agreement under which Solutia will continue to operate the Dequest facility to produce Dequest products exclusively for Thermphos at Solutia's plant in Newport, Wales, U.K. The closing of a sale of the Dequest business will be subject to certain governmental and regulatory approvals and other customary closing conditions. In addition, the sale transaction is subject to authorization by the bankruptcy court overseeing Solutia's reorganization, following completion of a court-supervised auction process. Solutia plans to seek bankruptcy court approval of the bidding procedures and other aspects of the auction process in April, 2007.
