AVON LAKE, OHIO (Dec. 22, 12:10 p.m. ET) – PolyOne Corp. said it has completed the acquisition of ColorMatrix Group Inc., which makes specialty additives, liquid colorant and dosing technologies that serve niche markets such as performance molding and rigid beverage and food packaging.
“This acquisition marks a significant milestone in PolyOne's transformation to a global, specialty company,” said Stephen D. Newlin, chairman, president and CEO of PolyOne, in a statement.
He added, “We have said before that this is a game-changer for PolyOne, as we now expect to derive more than 50 percent of our earnings from our specialty platform. I am confident that we will be able to accelerate growth and expand our leading market positions as we leverage ColorMatrix's proprietary technology and PolyOne's commercial resources and global scale.”
PolyOne said ColorMatrix has an intellectual property portfolio of 162 patents and 107 pending applications worldwide.
In connection with the acquisition, PolyOne said it secured a new, $300 million Term Loan B, replaced its expiring accounts receivable securitization facility with a new $300 million asset-based revolving credit facility, and redeemed its remaining 2012 senior notes.
“There was substantial investor interest in our new credit facilities, and I am pleased that we were able to secure both at better than expected rates,” said Robert M. Patterson, PolyOne's executive vice president and chief financial officer, in a statement.
The six-year Term Loan B has an initial coupon of 5 percent with an all-in yield of 5.6 percent inclusive of original issue discount and fees, PolyOne said. The five-year revolving credit facility is undrawn and has current availability of approximately $150 million.