The operation will mark the end of our focus

Rhodia has just concluded its first big acquisition since the beginning of the crisis. For $ 489 million, the group takes control of Feixiang Chemicals, a company of 650 people located in Zhangjiagang, 110 kilometres from Shanghai. Its CEO says "echos" the issue of the operation.

You announce an acquisition in China. This means that, for you, the crisis is over

We go out actually the crisis with a very high dynamics and a strategy focused on growth. This acquisition is a great first step. It allows us to strengthen us in Asia, the region of the world which enjoys the strongest growth, and in a trade, surfactants, that we have identified as a base of development for Rhodia.

What is the point of this market

Surfactants or surface-active are components that modify the qualities of the product surface. They are used to make shampoos, detergents, but also in oil exploitation or agrochemicals. It is a market that has resisted well to the crisis, and which is still fairly fragmented. There are things to do.

With the acquisition of Cognis by BASF which seems about to be reached, the concentration is running...

This is why it is very important for us to grow in this sector, and we studied several tracks for a year. Feixiang Chemicals appeared as especially interesting. On the one hand, the technology of amines and mastered this business is very complementary to our products. On the other hand, it is a company in growth of the order of 20 per year and very profitable. This year, it should a gross for a little more operating surplus of $ 50 million, on sales of slightly more than $ 250 million.

It was for sale

Non. But the Chinese contractor which founded it ten years ago wanted to internationalize it. He did enter Bain Capital in turn table, with a little more than 20. And he realized that he could hardly go further alone.

How much do you pay

The price is based on an enterprise value of 489 million for 100 of the capital, is 9 times the gross surplus of operation expected this year. It is a reasonable price, in line with the transactions in the sector. We asked the founder to 12.5 for two years, to facilitate the transition.

Are you you into debt to finance the operation

No, we can pay by using the cash of Rhodia.

Will the Chinese authorities responsible for competition have their say...

Yes, but we anticipate no problems technical or policy. The new entity will be leader in China, without having a dominant position. Globally, it supports our position in the trio of head, behind Cognis German and British Croda.

Will this transaction change the profile of Rhodia

Now, Asia weigh almost as much as Europe in sales! A alone, Asia and the Brazil account for almost half of our activity.

In Europe, there are concerns of a possible cyclical recurrence. Are you worried

Today, we see no signs of slowing down in Europe. Financial and political in May had no impact on orders. And it lowers the euro, a positive point for an exporter as Rhodia. Full-year euro from 1.40 to 1.20 dollar improves our gross EUR 70 million operating surplus.

Trade unions have referred to the sale of your activities in aspirin. What is

The process stopped during the crisis, was relaunched, and we have received several brands of interest. The operation will mark the end of our focus.