Polymer materials, services and solutions provider PolyOne has decided to sell its performance products and solutions (PP&S) business for $775 million in cash.
The company has reached a definitive agreement with SK Capital Partners, a private investment firm focused on the speciality materials, chemicals and pharmaceuticals sectors.
PP&S is involved in the supply of formulated polyvinyl chloride and polypropylene-based solutions, contract manufacturing services for the North American construction and automotive end markets. It reports sales of $700m.
The company’s financial adviser HSBC led the sale process for PolyOne with Jones Day acting as outside legal counsel.
PolyOne chairman president and CEO Robert M Patterson said: “We conducted what became a very competitive bidding process for our PP&S segment.
“Ultimately, we determined that divesting the business to SK Capital Partners would provide greater flexibility to accelerate our speciality growth strategy and is in the best interest of customers, employees and shareholders.”
The deal is dependent on the satisfaction of regulatory requirements and other customary closing conditions. The company expects to close the transaction during the fourth quarter.
The company expects PP&S business to be reported as a discontinued operation according to the US Generally Accepted Accounting Principles (GAAP).
Patterson added: “In the short term, proceeds from the sale will be used to pay down debt on our revolving line of credit and reduce our overall net debt to EBITDA leverage from 3.2 to 2.0 by year-end.
“Longer term, we can further refine our focus on investing in and growing our three remaining segments: speciality engineered materials; colour, additives, and inks; and distribution.”
In June 2018, PolyOne Corporation acquired engineered materials and specialty composites manufacturer PlastiComp for an undisclosed amount.
Source: Chemicals Technology
The investment enables the steam cracker to increase the share of renewable and recycled raw materials used in its (ethylene and propylene) production. The move supports the Borealis Strategy 2030 for a circular economy. The Porvoo investment program is expected to be completed in 2025.
Murray Auchincloss, bp’s CEO, said in a statement: “As I set out in February, BP’s destination from IOC [international oil company] to IEC [integrated energy company] is unchanged – and we need to deliver as a simpler, more focused, and higher-value company.
Founded in 1972, Tecnofilm has expanded its product portfolio over the years to offer a wider range of compounds and functional polymers for various industrial applications and technical articles. The company has patented several of its products.
