Mexichem purchasing PolyOne PVC resin assets for $250 million in cash

By Stephen Downer
Correspondent

Published: March 25, 2013 9:48 am ET
Updated: March 25, 2013 12:56 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers, Compounding
Companies & Associations PolyOne Corp.

AVON LAKE, OHIO — PolyOne Corp. said it agreed to sell its vinyl dispersion, blending and suspension resin assets to Mexichem SAB of Mexico City for $250 million in cash.

The sale is subject "to satisfaction of regulatory requirements and other customary closing conditions," the Avon Lake-based compounder and distributor said in a news release.

Carlos Manrique, managing director of Mexichem's chlorovinyl network, said a major attraction of the deal is PolyOne's technological development of made-to-measure solutions.

PolyOne's raft of products "will complement in a big way our product portfolio," Manrique said in a statement posted on the Mexican Stock Exchange Web site,

"This acquisition is consistent with [Mexichem's] strategy of downstream vertical integration, focusing on products that offer added value and in which Mexichem has only a small market share.

"The acquisition will strengthen Mexichem's position in the market thanks to the intrinsic competitive advantages of shale gas in the North American region and Mexichem's vertical integration."

PolyOne's resin assets are part of its Performance Products and Solutions business segment. They generated sales of $147 million in 2012, PolyOne said.

"Since we began our specialty transformation, we have divested commodity equity investments including Oxy Vinyls in 2007 and SunBelt in 2011 and reinvested the proceeds to accelerate the growth of our specialty offerings," said Stephen Newlin, chairman, president and CEO of PolyOne, in a statement. "As our only remaining business involved in the direct manufacture of base resins, we view the sale of our resin production assets as a natural and next step in the evolution of our portfolio."

The sale's impact to PolyOne 2013 earnings depends on several factors, including the timing of the transaction's close, the company said. It expects that dilution on an annualized basis will be about 22 cents per share.

Newline said that while the sale "is dilutive to earnings in the near term, we remain committed to our 2015 earnings target of $2.50 per share."

The sale to Mexichem follows another big deal for PolyOne which was finalized earlier this month — the company's $393 million purchase of Spartech Corp. That deal, which was first disclosed on Oct. 24, was completed on March 13.

Crain's Cleveland Business contributed to this report.


Comments

Mexichem purchasing PolyOne PVC resin assets for $250 million in cash

By Stephen Downer
Correspondent

Published: March 25, 2013 9:48 am ET
Updated: March 25, 2013 12:56 pm ET

Post Your Comments


Back to story


More stories

Image

Canadian mold maker Thibault adding to new operation in Mexico

August 27, 2014 3:19 pm ET

Canadian mold maker I Thibault Inc has purchased an established Mexican company, Tecnimoldes SA de CV, for a seven-figure-dollar-sum and renamed it...    More

Image

Sony entering recycled PC market

August 27, 2014 11:08 am ET

Consumer electronics giant Sony Corp. is getting into a sideline of selling recycled resins.    More

Image

Nova expanding PE research center

August 26, 2014 1:36 pm ET

Nova Chemicals Corp. has broken ground on an expansion of its polyethylene research center in Calgary, Alberta.    More

Image

Sinopec licenses PP technology to USA, posts half-year results

August 26, 2014 11:46 am ET

China's state-owned petrochemical giant Sinopec Corp. said it is licensing polypropylene polymerization technology to a U.S. plant for the first time ...    More

Image

Megadyne buying Belt Corp. of America

August 26, 2014 10:35 am ET

In a move aimed at building its specialty belting manufacturing and fabrication operations, Jason Industrial Inc. — Megadyne SpA's wholly owned ...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

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

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events