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, Materials Suppliers, Europe

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

Prices trending up for some recycled resins

July 24, 2014 1:27 pm ET

Plastics News is correcting prices for recycled grades of several commodity resins on this week's resin pricing chart.    More

Meredian merging with Danimer Scientific

July 24, 2014 1:59 pm ET

Bioplastics maker Meredian Inc. is merging with its sister firm, Danimer Scientific LLC.    More

Image

US Bioplastics receives funding to bring Gatoresin to the market

July 24, 2014 1:44 pm ET

Materials maker U.S. Bioplastics is hoping its Gatoresin product will take a bite out of the bioplastics market, thanks to funding from a state...    More

Image

Injection molder, recycler Polyvulc USA puts itself up for sale

July 24, 2014 12:41 pm ET

Fred Farrell and Larry Lambiotte, founders of Polyvulc USA Inc. and its subsidiaries Polyvulc Tire Recycling Llc and Winnsboro Rubber Recycling LLC,...    More

Image

BASF posts growth in second quarter

July 24, 2014 11:08 am ET

German chemical giant, BASF SE, has announced a 1 percent growth in sales for the second quarter of 2014 compared to the same period in 20...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

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

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

More Events