Mexichem expects rapid growth in 2012

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MEXICO CITY (Jan. 20, 10:25 a.m. ET) — Mexican PVC pipe and resins maker Mexichem SAB de CV, which in November made a hostile takeover bid for Dutch counterpart Wavin NV, says it expects sales of $4.3 billion this year, up 13.2 percent from 2011, regardless of whether the Wavin and other potential deals are cemented.

The Tlalnepantla, State of Mexico, company, whose other operations include hydrofluoric acid, chlorine and caustic soda production and fluorite extraction, had 2011 sales of $3.85 billion, up 34 percent from 2010, it said Jan. 18.

The expected increases in sales and EBITDA in 2012 “will be a result of projects announced in 2011, in addition to the organic growth of our businesses, and do not take into consideration possible acquisitions by the company,” Mexichem said in a statement on the Mexican Stock Exchange Web site where its posted its preliminary annual results for 2011.

The global economic crisis has “given Mexichem new opportunities and challenges and allowed us to consolidate our markets and strengthen our business,” CEO Rafael Dávalos said in the statement.

According to the company, the 34 percent sales boost in 2011 was due primarily to its acquisition of resins maker Policyd Plásticos SA de CV, PVC pipe maker Plásticos Rex SA de CV and compounder AlphaGary Corp. of Leominster, Mass.

Mexichem, Latin America’s largest manufacturer of PVC pipe, made an initial bid of 8.5 euros per Wavin share in November, improved the offer to 9 euros in December and then again to 10 euros later in the month, when finally Wavin granted due diligence access to the Mexican company.

Mexichem’s latest offer values Wavin, Europe’s largest pipe maker, at 500 million euros ($646 million at today’s exchange rate).