Bekaert and Saint Gobain have signed an agreement regarding the sale of Bekaert's Specialty Films activities to Saint Gobain Performance Plastics Corporation, a US based corporation of the Saint Gobain group.

The transaction covers the production facilities in San Diego (US), Zulte (Belgium) and Suzhou (China), the operations under development in China, and all sales and service centers worldwide. The deal involves all employees currently working in the Specialty Films platform, which is known as Solar Gard Specialty Films in the wide range of markets served.

The transaction is subject to customary closing conditions. Bekaert and Saint Gobain expect to close the deal in the course of 2011. Subject to final determination of transaction costs and other expenses, Bekaert expects the transaction to result in a capital gain of approximately EUR 10 million, and in a reduction of Bekaert's consolidated net debt of approximately EUR 80 million.

Solar Gard Specialty Films is a market leader in the development, manufacture and distribution of window films and other specialty films for automotive, architectural, photovoltaic and other custom coating applications. The division accounted for about 3% of Bekaert's consolidated sales in 2010, and had a profitability level in line with Bekaert's long-term profitability guidance.

Bekaert acquired the Specialty Films business in 2001 and developed it into a global market leader. While the business continued to grow successfully, technological synergies within Bekaert have proven to be limited over time. The future growth of Solar Gard can therefore be best secured within the Saint Gobain group that sees significant product and market synergies for Solar Gard with its Innovative Materials businesses.

The contemplated divestment of the Specialty Films activities is a confirmation of Bekaert's strategic focus on realizing sustainable profitable growth in activities related to the company's core technological competences: advanced metal transformation and coatings.