Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
      • 2023 winners
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • Bioplastics Live
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Resin Prices Overview
    • Commodity Thermoplastics
    • High Temperature Thermoplastics
    • Engineering Thermoplastics
    • Recycled Plastics
    • Thermosets
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
October 16, 2014 02:00 AM

PolyOne denies report it's bidding for Klöckner Pentaplast

Frank Esposito
Senior Staff Reporter
Michael Lauzon
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    UPDATED — Compounding leader PolyOne Corp. is denying a report that it bid as much as $2 billion for film and sheet major Klöckner Pentaplast Group.

    “PolyOne is not bidding on Klöckner Pentaplast,” a company spokesman said.

    An Oct. 16 Reuters story cited anonymous sources and listed Avon Lake, Ohio-based PolyOne and private equity firm Apollo Global Management LLC among four bidders for Montbaur, Germany-based Klöckner. The other two firms are not listed, but Bloomberg News last month identified Apollo and private equity firms Ares Management LP and Platinum Equity LLC as potential bidders.

    Apollo Global declined to comment on the Reuters and Bloomberg reports.

    "A deal of this size limits it to private equity buyers," said Bill Ridenour, president of Polymer Transactions Inc. of Newbury, Ohio. "Four or five private equities have the cash."

    Among private equities, Klöckner would fit well with Apollo Global, according to Ridenour.

    "[Apollo Global] management have the most experience in polymers," Ridenour said in an Oct. 16 phone interview. The company lists on its website four key industries that theoretically could complement Klöckner: packaging, chemicals, consumer products and manufacturing.

    One market source who requested anonymity said SVP could have a hard time getting a $2 billion sale price. That price would be a multiple of about eight times earnings before interest, taxes, depreciation and amortization (EBITDA), a high multiple give the stock market's recent gyrations.

    In May, news agencies had reported that Klöckner's majority owner, Strategic Value Partners, had hired advisers and expected to receive tentative bids in July. Greenwich, Conn.-based hedge fund SVP acquired Klöckner Pentaplast in summer 2012 from New York private equity firm Blackstone Group LP. Blackstone had acquired Klöckner Pentaplast in 2007 from Cinven Partners LLP of London.

    PolyOne has been on a multi-year buying spree, acquiring six businesses since 2007, including paying almost $500 million in late 2011 for liquid colorant maker ColorMatrix Inc. and almost $400 million to buy sheet maker and compounder Spartech Corp. The Spartech deal stood out, since it marked a move downstream into production of plastic products.

    PolyOne ranks as North America's largest compounder and concentrate maker, with a market share estimated at 12 percent. The firm has annual sales of $3.8 billion.

    Klöckner bills itself as the world's leading maker of film and sheet for pharmaceutical, medical devices, food, electronics and general-purpose thermoformed packaging. It also makes film for printing and specialty applications. For its 2013 fiscal year ended Sept. 30, Klöckner logged net sales of about $1.55 billion, up about 2 percent from the previous year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were about $225 million, up 14 percent from 2011-12. The company employs 3,100.

    In North America, Klöckner's 2013 sales were estimated at $610 million, ranking 13th among the region's film and sheet makers, according to a Plastics News estimate. The firm operates seven North American plants that employ 1,100.

    RECOMMENDED FOR YOU
    Numbers That Matter Live — sign up for the next live
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    Plastics treaty talks bring industry leaders to Paris
    2
    Resin Prices
    3
    Recycling plant for laminated packaging launches in Mexico
    4
    Target, Walmart cut from bag drop-off site directory following report
    5
    Plastics industry social media accounts worth following
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
          • 2023 winners
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • Bioplastics Live
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Resin Prices Overview
      • Commodity Thermoplastics
      • High Temperature Thermoplastics
      • Engineering Thermoplastics
      • Recycled Plastics
      • Thermosets
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified