Chemical producer Solvay SA has hired Credit Suisse Group to find a buyer for its sulfuric acid unit and approached private equity firms about a deal that could reach $800 million, according to three people familiar with the matter. An auction for the unit, referred to as eco services, started this week, the people said. Eco services has annual earnings of around $110 million before interest, tax, depreciation and amortization, or EBIDTA, one of the people added.Solvay said on Wednesday it would explore strategic options for the unit but did not give more details. A Solvay spokeswoman did not respond to a request for comment on the details of the sale. A Credit Suisse spokesman declined to comment.Solvay's eco service business produces and regenerates sulfuric acid, which is used as a catalyst at refineries in the production of high-octane gasoline.The unit is a supplier to the largest refineries on the U.S. West Coast, along the U.S. Gulf of Mexico and in the U.S. Midwest and Canada, according to its website. It accounted for 9 percent of Solvay's net sales of 3.13 billion euros ($4.32 billion) in 2013.
Credit Suisse Group AG is a Switzerland-based holding company engaged in private banking, investment banking and asset management areas. Shares of CS traded higher by 0.97% or $0.3/share to $31.35. In the past year, the shares have traded as low as $24.84 and as high as $33.98. On average, 794779 shares of CS exchange hands on a given day and today's volume is recorded at 1377482.
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