Mexichem buys Wavin for $704 million

Hamish Champ

Published: February 8, 2012 6:00 am ET

Related to this story

Topics Construction, Materials, Mergers & Acquisitions, Pipe/Profile/Tubing, Suppliers

MEXICO CITY (Feb. 8, 7:35 a.m. ET) — In a deal that creates a global plastic pipe manufacturing business, Wavin NV has accepted a bid of 10.50 euros per share ($13.94) from Mexichem SAB de CV, the Mexican chemicals giant.

The offer follows two unsuccessful attempts by Mexichem to buy Wavin tabled late last year, and values the Netherlands, Zwolle-based group at around 531 million euros ($704 million).

In December Wavin announced it was granting Mexichem access to its books, having received assurances on a number of issues relating to a possible post-takeover environment for the company, including strategy and employees’ future.

In a joint statement the two businesses said there was a “compelling strategic rationale” for the takeover.

The combined group would have “stronger design, engineering and R&D capabilities whilst leveraging Mexichem’s low cost manufacturing platform”, as well as having “a more diversified end-market profile across the residential, non-residential and infrastructure segments exposing it to different economic and construction cycles”.

Despite the takeover Wavin is set to retain its own corporate identity, including its brand in the Netherlands, as well as retaining its current employment structure, including pension rights for its staff.

According to the statement issued by both companies today no jobs will be lost as a result of the takeover, and “key management” at Wavin will be retained.

Speaking about the deal, Ricardo Gutiérrez Muñoz, president of executive committee at Mexichem, said the geographic footprint and product portfolio of Wavin and Mexichem were “highly complementary and together we will be exceptionally positioned to capitalise on growth opportunities.

“We welcome Wavin to the Mexichem group and are excited about the opportunity of working with the Wavin management team,” he added.

Henk ten Hove, Wavin’s chief executive, said the Mexichem offer “provides an opportunity for Wavin to join forces with a leading plastic pipe systems company whilst preserving our history, culture and assets such as our brand, our broad portfolio and our innovative power.

“We will be able to accelerate the Wavin 2015 strategy, to participate in the industry consolidation and to benefit from cross selling, sourcing power and best practice sharing. We look forward to a sustainable future together.”

The deal is expected to complete by the end of March this year.


Comments

Mexichem buys Wavin for $704 million

Hamish Champ

Published: February 8, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

China's biggest fuel tank maker getting a US foothold

April 23, 2014 4:41 pm ET

The majority owner of China's biggest fuel tank maker is expanding its global automotive footprint with the acquisition of the fuel tank unit of...    More

Image

China's Shide Group, BASF unveil 'revolutionary' all-plastic window profile

April 23, 2014 9:10 pm ET

SHANGHAI — The PVC window profile market in Asia is expected to increase four-fold by 2025, and Chinese building products maker Dalian Shide...    More

Worker dies in fall at Formosa Texas plant

April 23, 2014 4:04 pm ET

A subcontractor died April 22 after falling 25 feet during routine cleaning operations at a Formosa Plastics Corp. USA facility in Point Comfort,...    More

Image

Milliken expanding SC plant for additional PP clarifying agent capacity

April 23, 2014 3:42 pm ET

American chemical company Milliken & Co. has announced plans for a major expansion in capacity for its Millad NX8000 clarifying agent for...    More

Image

CPM Extrusion, ECON launch new line of underwater pelletizers

April 23, 2014 11:25 am ET

CPM Extrusion Group and ECON GmbH unveiled their brand new EUPC line of underwater pelletizers today at ChinaPlas held in Shanghai, China.    More

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Mold Making and Tooling Review and Outlook 2014 North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events