PVC resin and pipe maker Mexichem SAB de CV has acquired Vinyl Compounds Holdings Ltd. Terms were not disclosed.
In a Nov. 28 news release Mexichem, whose headquarters are on the northern edge of Mexico City, said the acquisition will “provide us with access to new geographies and end markets.”
Based in Chinley, England, VCHL manufactures PVC compounds used in pipe and profiles, footwear and consumer goods. It has annual sales of about $40 million.
VCHL's stabilizer technologies and recycled PVC capabilities will help Mexichem to integrate its compounding operations.
Sameer Bharadwaj, president of Mexichem's compounds business, said the deal is in keeping with Mexichem's strategy of completing what he described as “bolt-on” acquisitions.
These, he said, “provide us with access to new geographies and end markets, expand our portfolio of specialty products and serve as a platform for future growth, while enhancing returns on invested capital.”
Mexichem's vinyl business reported sales of $2 billion for the 12 months through Sept. 30. With operations in 30 countries and 18,000-plus employees, the company's shares have been traded on the Mexican Stock Exchange for 30 years and it has annual sales of $5.7 billion.