PolyOne Corp. is paying $85.5 million to acquire two composites businesses from Gordon Holdings Inc.
Avon Lake, Ohio-based PolyOne will take ownership of Gordon Composites and Polystrand Inc. Gordon Composites makes high-strength profiles and laminates for sports equipment, office furniture and other markets. Polystrand is a maker of reinforced plastic composites.
Polystrand and Gordon Holdings both are based in Englewood, Colo. PolyOne will combine the two businesses into a new Advanced Composites platform that will be part of its Specialty Engineered Materials (SEM) business unit.
“With these acquisitions, we've built upon our past success and portfolio of composite solutions to now serve our customers more comprehensively than ever before,” SEM President Craig Nikrant said in a July 26 news release.
PolyOne expects the acquisitions to add $40 million in annual sales and to be accretive to earnings in 2017. The deal is PolyOne's second of 2016. In February, the firm paid $72 million to Kraton Performance Polymers Inc. for technologies and compounding assets related to thermoplastic elastomers. Overall, PolyOne now has made four acquisition deals since 2014.
PolyOne ranks as North America's largest compounder and concentrates make and as one of the region's largest resin distributors. The firm posted sales of $3.4 billion in 2015.
Gordon Composites and Polystrand each employ about 60.
PolyOne also on July 27 released financial results for the second quarter and first half of 2016. For the half, the firm's sales fell 3 percent to $1.71 billion as profit slipped 8 percent to $89 million. PolyOne's distribution unit posted first-half sales growth of almost 2 percent, while SEM saw sales increase by 1 percent for the six-month period.
PolyOne's per-share profit for the quarter exceeded investor expectations, but its per-share price still was down 1.5 percent to $36.90 in late trading July 27. That level is about 20 percent higher than it was on Jan. 1.