Rhodia, Snia and Radici Group have signed a letter of intent to combine Nylstar, a 50/50 joint-venture between Rhodia and SNIA with sales of EUR 428m in 2004, and essentially RadiciFibres for RadiciGroup which reported sales of EUR 588m in 2004. Nylstar is a European player in the nylon textile yarn industry and RadiciFibres Spa produces synthetic fibres.
The new company is projected to generate annual sales of more than EUR 800 million and to employ more than 4,000 people. Radici is expected to hold a large majority stake in the new company.
This alliance will put Nylstar and RadiciFibres in a stronger position to face the growing impact of imported goods from Asia.
BNP Paribas Corporate Finance acted on this transaction as advisor to Rhodia.