Solutia to Buy CPFilms
Solutia Inc. announced today that it has reached an agreement to purchase CPFilms Inc. from Akzo Nobel N.V. for $200 million. CPFilms Inc., formerly known as Courtaulds Performance Films, was acquired by Akzo seven months ago as part of Courtaulds plc. The division manufactures window film and other high technology film products for automotive and architectural after-markets, and a variety of additional specialty film applications.
Total sales for CPFilms are approximately $130 million per year. Key product lines include window film products, marketed under the Vista, FormulaOne Performance Automotive Film, Llumar and Gila trademarks, which are sold to the consumer after-market and distributed worldwide through an independent network of professional installers and retail ``do-it-yourself'' stores.
Additional product lines include highly specialized film products used in medical devices, satellites, computer touch screens and displays for electro-luminescent watches. With manufacturing sites in the USA and the UK, and with a worldwide distribution network, CPFilms employs 640 people.
``The acquisition of CPFilms illustrates Solutia's strong commitment to profitable growth,'' said Robert Potter, chairman and CEO of Solutia. ``It's also an excellent addition to our product portfolio, particularly in relationship to our Saflex plastic interlayer business.
``As we work to grow our Saflex business, CPFilms' global leadership position not only will extend our product offering to the glass and plastic substrate markets, but the combined technologies will also allow us to provide laminated product combinations and performance characteristics that were not possible before. This acquisition reflects our growth strategy of concentrating on higher margin businesses that are leaders in their respective markets,'' Potter continued.
``CPFilms is a strong complement to our Saflex business,'' said Victoria Holt, vice president and general manager, Saflex. Saflex plastic interlayer, one of Solutia's leading products, is used to make laminated glass for automotive and architectural applications.
``This acquisition will immediately enhance CPFilms' presence in global markets and Saflex's access to the high tech markets in the United States,'' Holt said. ``We are very excited by the short-and long-term potential of developing next generation performance glass systems utilizing current and emerging Saflex and CPFilms technologies.''
Heading the CPFilms business unit of Solutia will be Ken Vickers, who has led this business for six years. ``Solutia is an ideal partner for CPFilms,'' Vickers said. ``We have a similar culture having evolved from large corporations and we are market leaders in our respective businesses.''
Vickers will report to Mike Miller, Solutia's vice chairman.
Solutia is an applied chemistry company and serves customers in the home furnishings, construction, automotive and industrial products markets. Solutia also supplies Gelva adhesives to the film industry worldwide.