PVC and specialty chemicals maker Mexichem SAB de CV of Mexico City has acquired 70 percent of Brazilian pipe maker DVG Indústria e Comercio de Plasticos Ltda. (Plastubo).
In a Jan. 24 filing with the Mexican Stock Exchange, Mexichem said the acquisition was made through its subsidiary, Amanco Brasil Ltda. of Sao Paulo, which it bought in 2007.
Amanco has an option to buy the remaining 30 percent of Plastubo within three years.
According to Mexichem, Plastubo specializes in rigid PVC pipe for drinking water and drainage and supplies such sectors as housing, irrigation and infrastructure.
With sales of $61 million in 2007 and 282 employees, it has three plants in Brazil: one in Ribeirao das Neves, another in AnÃ polis and a third in Maceó.
Mexichem said that, as a result of the deal, it had underlined its growth strategy in Latin America, especially in the Brazilian market. It was offering products with the highest added value in sectors with the greatest growth and profitability, such as housing.
Mexichem acquired Amanco in its entirety in 2007. It also took a controlling stake in PVC resin maker Petroquímica Colombiana SA (Petco) of Cartagena, Colombia.
At the time, Enrique Ortega, Mexichem's investor relations manager, said the purchases were part of a $1 billion, five-year expansion plan in Latin America.