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, Compounding, Materials Suppliers
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

Ferro sells another piece of its plastics business

December 19, 2014 3:33 pm ET

Ferro Corp. has sold its North American polymer additives business to a private equity firm for $154 million in cash.    More

Image

Alex Brands buys iconic Shrinky Dinks toys

December 19, 2014 3:15 pm ET

First Slinky, now Shrinky Dinks. What will toy and games investment firm Alex Brands buy next?    More

Image

Antimicrobial polymers firm TiFiber launching pilot production in Ark.

December 19, 2014 10:58 am ET

TiFiber Inc., which makes synthetic compounds to control dangerous microorganisms, will locate a pilot production facility and its future company...    More

Image

Patel named LyondellBasell CEO

December 19, 2014 9:56 am ET

Bhavesh V. “Bob” Patel has been named CEO of Houston-based polyolefins producer LyondellBasell Industries NV, effective Jan. 12.    More

Image

Momentive to get a new name in January

December 19, 2014 9:45 am ET

Momentive Specialty Chemicals Inc. will change its name to Hexion Inc., effective Jan. 15.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Upcoming Plastics News Events

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

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

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events