EXHIBIT 99(i)
[SOLUTIA LETTERHEAD]
FOR IMMEDIATE RELEASE
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Contacts: Financial - Xxxxx Xxxxxxxxxx 000-000-0000
Media - Xxxx Xxxxxx 000-000-0000
SOLUTIA CLOSES SALE OF ITS
RESINS, ADDITIVES AND ADHESIVES BUSINESSES
ST. LOUIS, Jan. 31, 2003 - Solutia Inc. (NYSE:SOI) today announced that
it closed the sale of its resins, additives and adhesives businesses to UCB S.A.
for U.S. $500 million cash.
Xxxx X. Xxxxxx, chairman, president and chief executive officer of
Xxxxxxx said, "We are pleased that we have been able to conclude this sale
quickly. Solutia will use the proceeds to substantially pay down debt, which
will strengthen our balance sheet and provide us with greater flexibility to
deal with future business risk and uncertainty." He added, "This sale allows
Solutia to focus on the growth and market penetration opportunities that we are
pursuing in our remaining businesses."
TRANSACTION DETAILS
The transaction is anticipated to be slightly cash accretive and 7 to 9
cents dilutive to earnings per share in 2003. Upon closing, a modest accounting
gain is expected. The company expects approximately $40 million in cash interest
savings in 2003.
The agreement includes 10 production sites that make liquid and powder
coatings resins, technical resins, additives products and pressure-sensitive
adhesives. The resins, additives and adhesives businesses together employ
approximately 1,700 individuals in 22 countries and have sales of approximately
$560 million for the year ended Dec. 31, 2002.
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FACILITIES INVOLVED
Solutia will sell manufacturing facilities in: Wiesbaden, Frankfurt-
Fechenheim and Hamburg, Germany; Werndorf, Austria; Xxxxxx d'Ezzelino, Italy;
Dijon, France; Soborg, Denmark; La Llagosta, Spain; Rayong, Thailand and
Suzano, Brazil, as well as research and development facilities in Graz,
Austria, and Springfield, Mass.
Solutia will continue to manufacture Resimene(R) amino cross-linking
resins for UCB at its LaSalle, Canada, facility, and its Indian Orchard plant in
Springfield, Mass., as well as Gelva(R) adhesives also at the Indian Orchard
facility. All other manufacturing assets at Indian Orchard will remain part of
Solutia. The sale does not include Solutia's industrial products businesses or
its Butvar(R) specials and dispersions and Santotac(R) thermoplastic resins.
EMPLOYEE INFORMATION
As part of today's agreement, current employees of the resins,
additives and adhesives businesses will transfer to UCB. At the La Salle,
Canada, and Springfield, Mass., locations, manufacturing employees will remain
Solutia employees and manufacture Resimene(R) resins and Gelva(R) adhesives for
UCB under operating agreements. In a limited number of areas, Solutia has agreed
to provide transition services to UCB.
FORWARD LOOKING STATEMENT
This press release contains forward-looking statements regarding
Xxxxxxx's expected use of the proceeds from the transaction discussed above and
the impact the transaction is expected to have on Solutia. These statements are
based on current expectations, but actual results may differ materially,
depending on such important factors as success in managing changes resulting
from this transaction, and other factors identified in Solutia's Annual Report
on Form 10-K for the period ended Dec. 31, 2001 and Quarterly Report on Form
10-Q for the period ended Sept. 30, 2002. These reports are filed with the U.S.
Securities and Exchange Commission and can be accessed through Solutia's
investor Internet site at xxx.Xxxxxxx.xxx.
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CORPORATE PROFILES
Solutia (xxxx://xxx.Xxxxxxx.xxx) uses world-class skills in applied
chemistry to create value-added solutions for customers, whose products improve
the lives of consumers every day. Solutia is a world leader in performance films
for laminated safety glass and after-market applications; process development
and scale-up services for pharmaceutical fine chemicals; specialties such as
water treatment chemicals, heat transfer fluids and aviation hydraulic fluid and
an integrated family of nylon products including high-performance polymers and
fibers.
Solutia.... Solutions For A Better Life.
UCB (xxxx://xxx.xxx-xxxxx.xxx), with headquarters in Brussels
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(Belgium), is a pharmaceutical and specialty chemical company, which operates on
a global scale. It is committed to pharmaceuticals, as well as to technically
innovative products in surface applications. It employs 10,000 people around the
world. The pharmaceutical research of UCB includes the following fields:
respiratory, including allergy and asthma, and neurology. UCB Pharma's main
products include Zyrtec (antiallergic), Keppra (antiepileptic), Nootropil
(cerebral function regulator) and Atarax (tranquillizer).
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Source: Solutia Inc.
St. Louis
Date 01/31/03
