Specialty chemicals maker Solutia (NYSE:SOA) is buying Southwall Technologies (NASDAQ:SWTX), a leader in films and glass products for the automotive and architectural industries, for $113 million.
Under the terms of the deal, Solutia will pay $13.60 a share to take over Southwall, representing a 45% premium to Southwall’s closing price on Thursday. Solutia said it will use cash on hand to fund the deal.
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The acquisition secures access for Solutia to Southwall’s proprietary XIR technology, which is used to make window films. The deal also adds to its portfolio state-of-the-art manufacturing capacity and proprietary capabilities to support high-tech films for the electronics market.
"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," Solutia CEO Jeffry Quinn said in a statement.
Both company’s boards of directors have approved the transaction. The tender offer is expected to be completed in the fourth quarter of 2011, pending customary closing conditions.