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

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

Clariant says Asia holds the key to growth

April 23, 2014 3:52 pm ET

Clariant AG is based in Switzerland, but its eyes are firmly focused further east.    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