St. Louis-based Solutia Inc. announced that it has reached a definitive agreement to purchase Etimex Solar GmbH, a supplier of ethylene vinyl acetate (EVA) encapsulants to the photovoltaic market. The purchase price of $324 million USD (240 million EUR) in cash is expected to be financed from existing cash on the balance sheet and additional debt.

According to the announcement from Solutia, combining EVA with its existing polyvinyl butyral (PVB) encapsulant capabilities positions the company as the world’s only one-stop source for solar encapsulant solutions.

“This acquisition is a solid step forward that strengthens our core competencies, expands our end markets and supports Solutia’s growth strategy,” says Jeffry N. Quinn, chair, president and chief executive officer of Solutia. “Renewable energy is an acknowledged source of long-term growth that fits well with Solutia’s businesses, and the combination of EVA and PVB encapsulant manufacturing capabilities will result in access to additional opportunities. I am extremely excited about Etimex Solar and the role it will play in Solutia’s future success.”

Etimex’s VistaSolar® products, manufactured in Dietenheim, Germany, are fast curing EVA films; the company also offers thermoplastic polyurethane (TPU) films that do not require curing. The transaction is expected to close during the second quarter of 2010, contingent upon customary closing conditions.