US investment firm adds to its European PVC business

By Don Loepp
Editor

Published: January 1, 2014 1:32 pm ET
Updated: January 2, 2014 8:18 am ET

Related to this story

Topics Materials Mergers & Acquisitions Europe Materials Suppliers
Companies & Associations

Los Angeles-based private buyout firm OpenGate Capital has wrapped up the second acquisition in one month of a PVC-related company in Europe.

OpenGate announced that it has won a bid to buy Kem One SAS, an insolvent PVC resin supplier based in Lyon, France. Terms were not disclosed.

Kem One is Europe's second-largest producer of PVC products, according to OpenGate. The seller is Swiss investment firm Klesch & Co. Ltd., which bought the business from Colombes, France-based Arkema SA in July 2012.

OpenGate is buying the business in a partnership with Alain de Krassny, a European chemicals industry executive and president of Vienna-based Donau Chemie AG. OpenGate and Krassny had been competing to buy Kem One, before deciding to combine forces on the deal.

The OpenGate-Krassny partnership also has an option to buy Kem One's downstream PVC extrusion business, Kem One Innovative Vinyls SAS.

Kem One makes PVC resin at seven plants, including six in France and one in Spain. The company has annual production capacity of more than 900,000 metric tons of PVC and employs more than 1,300, according to OpenGate. The company has annual sales of about $1.1 billion

Andrew Nikou, OpenGate's founder, managing partner and CEO, said his company saw both "operational challenges" and "tremendous potential [for] synergies" by adding Kem One to its holdings, which include two other European PVC business.

In early 2013, OpenGate bought PVC profile extruder Profialis from Tessenderlo Group. More recently, in early December, OpenGate announced a deal to buy a European PVC compounding business called Benvic from Solvay SA. That deal is scheduled to close in the first half of 2014.

Benvic's manufacturing plants are in France, Italy and Spain. The business employs around 200 and has annual sales of $220 million.

Kem One is the 14th business to join the OpenGate Capital portfolio, which now generates annual sales of $3 billion and employs 8,000.

The sale of Kem One SAS brings to an end a dispute between Klesch and Arkema. In a statement, Arkema said:

“In order to facilitate this takeover, Arkema has in particular waived all its claims on Kem One SAS which had been fully provisioned, adjusted certain commercial services provided to Kem One SAS, and undertaken, under certain conditions, to ensure the internal redeployment of 100 Kem One SAS employees.”


Comments

US investment firm adds to its European PVC business

By Don Loepp
Editor

Published: January 1, 2014 1:32 pm ET
Updated: January 2, 2014 8:18 am ET

Post Your Comments


Back to story


More stories

Image

PolyOne launches Geon BIO PVC using soy-based materials

April 24, 2015 11:48 am ET

More than a decade of research is paying off for Battelle Memorial Institute in the form of Geon BIO PVC compounds from PolyOne Corp.    More

Image

Study suggests infants at lower risk from BPA exposure than expected

April 23, 2015 4:58 pm ET

A new study shows that newborn babies may have less risk from bisphenol A exposure than originally thought.    More

Image

Braskem and Odebrecht reconsidering West Virginia plastics project

April 23, 2015 2:54 pm ET

Brazilian firms Braskem and Odebrecht have confirmed that they are re-evaluating Project Ascent, the major plastics and petrochemicals project they...    More

Image

DuPont center in India gets LEED Certification

April 23, 2015 1:07 pm ET

DuPont Co.'s Knowledge Center in Hyderabad, India, was awarded LEED certification by the U.S. Green Building Council.    More

Image

SiVance opens new R&D lab

April 23, 2015 12:07 pm ET

Milliken & Co. unit SiVance LLC has opened a new research and development lab for silicone and silane technologies in Gainesville, Fla.    More

Market Reports

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

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

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events