Solutia To Sell Nylon Business To SK Capital

Solutia has found a buyer for its unprofitable nylon business in private equity firm SK Capital Partners. At a closing expected on or about April 30, Solutia will receive $50 million in cash for the business, which had nylon resin and fiber sales of $1.8 billion last year. The transaction will leave Solutia, which emerged from bankruptcy early in 2008, free to pursue its profitable chemical specialties businesses. SK, headed by Barry Siadat, a chemical engineer who previously was a managing director at the private equity firm Arsenal Capital, will get five U.S. plants that employ 2,000 people. SK will assume employee, pension, and environmental liabilities. Fred Poses, former chief operating officer of AlliedSignal, will lead the nylon business.