Blackstone to take €1B puff off Solvay's cigarette filters business
December 08, 2016
Blackstone has agreed to a €1 billion sticker price for Acetow, the unit of Belgian chemicals group Solvay (BRU: SOLB) that makes material used in cigarette filters. That figure, inclusive of debt, represents a 7x EBITDA multiple, resulting in an estimated capital gain of €150 million for Solvay.
Blackstone's move comes even as Acetow's revenue dropped 16% in the last year to €542 million, according to Reuters, with over 90% of its revenue sourcing to cigarette filters. The deal is expected to close during 1H 2017. Solvay's stock closed up 2% for the trading day on the news at €110.55 per share.