Solvay to Create with Rhodia a Major Player In Chemicals

Solvay and Rhodia announced on April 4, 2011 the signing of a framework agreement according to which Solvay will launch a friendly cash offer for 100% of the share capital of Rhodia.
    
The cash offer at €31.60 per share (ex dividend of €0.5 per share) values the equity of Rhodia at €3.4 billion and the enterprise value at €6.6 billion, representing a REBITDA multiple of 7.3x. The offer represents a premium of 50% compared to the closing price of Rhodia on April 1, 2011 and a premium of 44% compared to the average closing share price over the last three months. The transaction has been recommended unanimously by the board of directors of Rhodia.
    
Solvay is headquartered in Brussels and employs about 16,800 people in 40 countries. In 2010, its consolidated sales amounted to €7.1 billion.
    
Rhodia employs around 14,000 people worldwide and generated sales of €5.23 billion in 2010. Solvay will fully finance the transaction with its cash resources.