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.
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.