Mexichem buying Vestolit for $293 million

By Stephen Downer
Correspondent

Published: August 5, 2014 12:59 pm ET
Updated: August 5, 2014 2:34 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers

MEXICO CITY — Mexican PVC and specialty chemicals maker Mexichem SAB de CV has agreed to buy German PVC paste producer Vestolit GmbH from investment company Strategic Value Partners LLC (SVP Global) for 219 million euros ($293 million), SVP said Aug. 5.

Based in Marl, Germany, Vestolit makes the PVC paste for flooring, wallpaper and underbody protection for cars, according to a news release from SVP.

Greenwich, Conn.-based SVP started looking for a buyer for Vestolit in mid July.

“This transaction represents an opportunity to expand our presence in Europe, enter new market segments and acquire new technology and best practices,” Mexichem said in a statement, posted on the Mexican Stock Exchange, noting that Vestolit has sales representatives in 35-plus countries.

Vestolit claims to be the only producer of high impact suspension PVC (HIS-PVC) for weather-resistant and energy-efficient windows and also produces alkyl-chlorides, “a value-added intermediary, used for a variety of chemical and industrial applications.”

Its total installed capacity is 415,000 tons per year and in 2013 it had a sales of 477 million euros ($638.4 million), SVP said.

“Under SVP Global's ownership, the profitability of Vestolit has grown and the business has made a number of advances, such as completing its transition to more environmentally friendly membrane electrolysis production techniques,” SVP added.

Mexichem, of Tlalnepantla, an industrial municipality close to Mexico City, is Latin America’s largest manufacturer of PVC pipe, vinyl resins and compounds. Neither it nor SVP mentioned when they expected the deal to be completed.

New York investment banking firm Jefferies LLC advised SVP. JP Morgan Chase & Co was Mexichem’s adviser.


Comments

Mexichem buying Vestolit for $293 million

By Stephen Downer
Correspondent

Published: August 5, 2014 12:59 pm ET
Updated: August 5, 2014 2:34 pm ET

Post Your Comments


Back to story


More stories

Image

New Hexcel plant will supply carbon fiber for Airbus A350 XWB

September 30, 2014 2:43 pm ET

Hexcel Corp. is investing $250 million on a new carbon fiber plant in France, with part of the production going into the future Airbus SAS A350 XWB.    More

Image

LyondellBasell CEO Gallogly to retire

September 30, 2014 3:00 pm ET

James Gallogly, CEO of Houston-based polyolefins producer LyondellBasell Industries NV, on Sept. 29 announced plans to retire in 2015.    More

Image

RJG buys UK training group G&A

September 30, 2014 11:10 am ET

G&A Moulding Technology Ltd., a United Kingdom-based training and consultancy group, has been bought by RJG Inc., the U.S.-based training business.    More

Image

Asahi Kasei breaks ground on Alabama compounding plant

September 29, 2014 5:39 pm ET

Asahi Kasei Plastics North America will be able to solve two problems at once with a new compounding plant in Athens, Ala.    More

Image

DuPont shifting Teflon production in China

September 29, 2014 2:35 pm ET

DuPont Co. will spend more than $15 million to improve its fluoropolymer product offerings in China.    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

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

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

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

More Events