Belgian chemicals and plastics maker Solvay said on Monday it will buy French chemicals company Rhodia, valuing the firm at €3.4 billion and ending a year-long hunt for a takeover deal.

Solvay, which sold its drugs unit to its U.S. partner Abbott Laboratories in September 2009 for €4.5 billion, said it would bid €31.60 per share for Rhodia in a deal that was unanimously recommended by Rhodia's board of directors.

The offer price constitutes a premium of 50% compared to the latest closing share price of Rhodia, giving an enterprise value of €6.6 billion and a recurring earnings before interest, tax, depreciation and amortization of 7.3 times.

Solvay said the acquisition of Rhodia will be earnings accretive from the first year and the deal will be fully financed by the company's cash resources.