Styron plans IPO to raise $400 million
BERWYN, PA. — Global polystyrene leader Styron LLC — which is changing its name to Trinseo SA later this year — is planning an initial public offering of stock.
Dow Chemical Co. sold Styron, its market-leading styrenics business, to private equity firm Bain Capital LLC last year for $1.6 billion. The company is based in Berwyn.
In a filing with the Securities and Exchange Commission, Styron said it plans to sell up to $400 million in ordinary stock through an IPO and will use part of the proceeds to repay debt. A June 28 news release gave no date for the IPO.
“Styron has delivered strong results and has positive growth momentum,” spokeswoman Donna St. Germain said June 30. “By going to the public markets, we can continue to build on that.”
Styron also makes ABS, SAN polymers, styrene-butadiene latex and synthetic elastomers, expanded PS and polycarbonate. Rumors of a potential IPO for the firm first surfaced in March.
Styron may be timing its IPO right, since the global economy appears to be in the early stages of recovery, said Michael Sison, a stock analyst with KeyBanc Capital Markets in Cleveland.
“Chemical companies tend to outperform in the early parts of economic recovery,” Sison said. Styron “would be an integrated chemical company with some commodity products,” he said. Almost 60 percent of its $5 billion in 2010 sales were from plastics.
DLH to launch production in Tennessee
CANTON, OHIO — Auto supplier DLH Industries Inc. is expanding production to Tennessee by opening a new plant that will begin production this fall.
DLH, based in Canton, previously had explored business potential in the Southeast, hiring a representative to open doors to potential customers in the region.
The Tennessee Economic and Community Development Commission said June 29 that the firm has signed a deal to open a 60,000-square-foot plant in an existing building in Bristol, Tenn.
The plant will employ 25, eventually expanding to 75 people.
DLH declined to discuss its plans, but the state's news release said the site will make parts for the auto industry. DLH does extrusion and injection molding, as well as in-house toolmaking.
Elag deal boosts Ampac's bags, pouches
CINCINNATI — Film manufacturer Ampac Holdings LLC has acquired Swiss packaging converter Elag Verpackungen AG.
Elag of Kirchberg, Switzerland, specializes in high-quality printed bags and pouches — 80 percent of which are exported, according to the company's website.
Terms were not disclosed, but Elag's senior management will retain their present roles, according to a June 30 news release. The company employs about 200.
“Ampac's acquisition of Elag has further advanced our global capabilities and provided additional resources for the development of innovative packaging ideas,” Ampac President and CEO John Baumann said in the release.
Cincinnati-based Ampac, with $315 million in 2010 sales, specializes in films, bags and pouches for food and beverage, pet food, health and beauty, lawn and garden, and pharmaceuticals.
FRP composites maker Enduro buys Bay
HOUSTON — Fiberglass-reinforced plastics manufacturer Enduro Composites Inc. bought Bay Products Inc. of Stateline, Nev., on June 21. Terms were not disclosed.
BPI President Martin Crawford will join Enduro, and the design and manufacture of BPI's line of odor control systems will be transferred to Enduro's plants in Houston and Freeport, Texas.
Houston-based Enduro makes products used in industrial, infrastructure and building applications, including offshore oil and gas drilling, chemical plants and water-treatment facilities.
Fisher-Barton acquires Zenith Cutter
CHICAGO — Fisher-Barton, a supplier of lawn-mower blades and agricultural knives, has purchased Zenith Cutter Co., a manufacturer of industrial knives, including products used in the plastics and recycling markets. Terms were not disclosed.
Zenith is based in Loves Park, Ill., and has plants in Loves Park and Ho Chi Minh City, Vietnam. Zenith will operate as an independent division of the Fisher-Barton Group of companies.
Chicago-based Dresner Partners, a middle-market investment bank, advised Zenith on the sale.