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

Almost half of mid-market firms say they are looking to buy competitors

March 2, 2015 3:52 pm ET

There are steps that plastics business owners can take to keep the mergers and acquisitions parade rolling into 2015.    More

Image

Lower oil prices will continue to impact PE, PP resin pricing

March 2, 2015 2:05 pm ET

Lower oil prices will continue to affect North American markets for polyethylene and polypropylene resin in the months ahead.    More

Image

BASF keeps innovating to drive customers

March 2, 2015 11:39 am ET

Materials giant BASF Performance Materials is keeping innovation alive with new products and processes.    More

Image

BASF earnings up despite 'disappointing economic development' for Europe

March 2, 2015 10:50 am ET

Chemicals giant BASF SE said Feb. 27 it had hit its goal for 2014, increasing earnings, “despite the disappointing economic development in...    More

Image

Borealis reports record profit for 2014

March 2, 2015 10:29 am ET

Borealis AG, the Austria-headquartered chemicals giant, announced record annual net profits, numbers the group said were boosted by improved margins i...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events