UCB has reached an agreement with Solutia to acquire Solutia's Resins, Additives & Adhesives activity for $500 million, plus a $10 million exclusivity fee. The new entity will focus on resins for industrial and specialty coatings, graphic arts and adhesives, using environmentally friendly technologies, according to UCB.

The activities taken over by UCB from Solutia will include liquid coating resins (including waterborne and high-solids), technical resins, additives and adhesives. These activities are mainly geared towards high-end industrial coating applications, with a particular focus on metal and automotive.

The acquisition will include approximately 1,700 employees, located in a number of research facilities and sales offices, and 10 production sites. These facilities are situated in Europe, as well as in the Americas and Asia.

The transaction is expected to close early in 2003, and is subject to regulatory approval. The activities will be consolidated as of the closing date.