Noveon Inc.'s delayed initial public offering is back on again, as the Brecksville, Ohio-based firm filed a required registration statement Feb. 23 with the Securities and Exchange Commission.
In a news release, Noveon officials said a majority of net proceeds from the IPO will be used to pay down debt. The number of shares to be offered and the price range have not been determined.
Officials at Noveon could not be reached for further comment. The firm first approached an IPO in mid-2002, when officials planned to raise $345 million through a stock offering. Of that amount, $200 million was to be used to repay debt owed to Goodrich Corp., its former parent.
Noveon formed in late 2000 when Goodrich spun off its performance materials business to AEA Investors Inc., a New York investment firm, for $1.4 billion.
In 2003, Noveon's sales were roughly flat at $1.1 billion, but the firm's profit dropped more than 60 percent vs. 2002 to $12.5 million. Noveon makes specialty PVC, thermoplastic polyurethane and cross-linked polyethylene.
The firm generated about 60 percent of its 2003 sales from the United States. Noveon employs 2,800 at 27 locations worldwide.
Noveon's specialty materials unit, which contains most of its plastics-related business, was the largest of the firm's three units in 2003, representing 38 percent of total sales. The unit's $429 million sales total was a jump of 7 percent vs. 2002. In a year-end SEC filing, officials attributed most of that jump to a $19 million uptick in sales of Estane-brand TPU. But the unit's operating profit dropped 10 percent vs. 2002, with officials chalking the drop up to higher raw material and utility costs for its Temprite-brand chlorinated PVC and polymer additives lines.
A diverse product line might help Noveon's IPO succeed, but the firm's TPU line is not likely to be leading the way, according to Faisal Syed, an industry analyst with Chemical Market Resources Inc. in Houston.