Rhodia sells its Kermel subsidiary
23 Jul 2002
Rhodia, one of the world's leading manufacturers of specialty chemicals, has signed an agreement to sell its wholly-owned Kermel subsidiary through a management buy out led by the European private equity firm Argos Soditic.
The transaction will be finalised before the end of August.
Based in Colmar (in the Haut-Rhin region of Eastern France), Kermel is the second largest European producer of high performance technical fibres. Kermel manufactures and sells meta-aramid fibre used in fire-protection clothing and various technical applications, such as electrical insulation.
The Rhodia Group believes that this and various other divestments it has planned for this year should allow it to reduce the level of its corporate debt by a total of 500 million Euros.
Rhodia generated net sales of 7.2 billion Euros in 2001 and employs 27,000 people world-wide.
