The Valence Group Global Chemicals M&A Conference
Wednesday, 14 September 2016 | Retaining acquired talent key to driving synergies | Nigel Davis | ICIS Chemical News
NEW YORK (ICIS)–The rapid removal on ambiguity for employees in an acquired company can be the key to retaining talent and to driving cost synergies, a Solvay executive said on Wednesday.
Speaking at the Valence Group Chemicals M&A Conference, Solvay executive board member Roger Kearns said that talking quickly to acquired employees at the material company Cytec was helping drive the integration process. Sacksful integration and cost synergies would be best achieved if talent is retained, he suggested.
Solvay’s integration of the composites and advanced formulation company Cytec will be completed in three weeks, the process having taken 10 months in total. The acquisition is helping transform Solvay into a specialties company focused more clearly on higher growth businesses and on light weighting in aerospace and in autos.
The key factor behind the integration of Cytec is that it will have been completed without a single loss of key talent, Kearns stressed. Solvay had spent a long time developing its specialities and materials strategy but was able to approach Cytec management and close the Cytec acquisition rapidly.
After close, in December last year, Cytec employees knew from the end of the first week what their future as part of Solvay held, Kearns said.
The deal is seen as “transformational” for Solvay from a strategic point of view.