Mexico City — Resin distributor Formerra LLC is pushing into new markets and deeper into Mexico with the acquisition of Suministro de Especialidades.
Mexico City-based Suministro also has locations in Guadalajara and Escobedo, Mexico.
"This investment underscores our commitment to expanding Formerra's leadership position in engineered materials and the strategic Mexico market. Looking forward, we will continue our pursuit of selective acquisitions, with a focus on expanding the platform and enhancing the breadth of solutions that Formerra brings to market," said Robert Jang, managing director at H.I.G. Capital, said in a statement.
H.I.G. purchased the resin distribution business of Avient Corp. for $950 million just about a year ago and renamed the operations Formerra.
The acquisition of Suministro is the second deal for Romeoville, Ill.-based Formerra under its new ownership, with the company previously acquiring Total Polymer Solutions of Dublin for an undisclosed price.
But the latest deal is all about Mexico.
"Suministro represents an exciting step into new product adjacencies with the addition of elastomers, adhesives, and other performance additives," Formerra CEO Cathy Dodd said in a statement.
"Suministro's extensive distribution network in Mexico, combined with Formerra's leading technical capabilities and global distribution network, offer attractive opportunities for customers and suppliers seeking a dependable partner for growth in Mexico," she said.
Branding at the Suministro booth at the Plastimagen plastics trade show that opened Nov. 7 in Mexico City included the names of both companies involved in the deal. Officials were not immediately available at the booth for comment on the day the deal was announced.
Formerra calls itself a global distributor of highly engineered thermoplastic resins, additives, and other specialty polymers.
The purchase of Suministro, the company said, "further cements Formerra's position as a leading distributor of engineered materials in Mexico while broadening its portfolio of elastomers, adhesives, and other performance additives."
Suministro's customer based includes the industrial, automotive, and consumer markets. All employees will join Formerra. The company started in 1990.
"Welcoming Suministro as a Formerra company augments our ability to serve customers in Mexico with an extensive distribution network, and an enriched array of complementary materials and technical service capabilities. The combination also fortifies our supplier relationships, allowing us to diversify our portfolio across North America while solidifying our footprint in central and southern Mexico," Dodd said in a statement.