PolyOne sell vinyl assets Mexichem $250 million

PolyOne to sell vinyl assets to Mexichem for $250 million

4:24 AM, 26th March 2013
PolyOne to sell vinyl assets to Mexichem for $250 million
Stephen D Newlin, Chairman, President and CEO, PolyOne Corporation.

CLEVELAND, US: PolyOne Corporation, a premier provider of specialized polymer materials, services and solutions, has entered into an agreement in which the company will sell its vinyl dispersion, blending and suspension resin assets to Mexichem, SAB de CV for $250 million in cash. The sale is subject to satisfaction of regulatory requirements and other customary closing conditions.

The pending sale’s impact to PolyOne earnings in 2013 is dependent on numerous factors, including timing of the transaction’s close. It is anticipated that dilution on an annualized basis will be approximately $0.22 per share.

“Since we began our specialty transformation, we have divested commodity equity investments including Oxy Vinyls in 2007 and SunBelt in 2011 and reinvested the proceeds to accelerate the growth of our specialty offerings. As our only remaining business involved in the direct manufacture of base resins, we view the sale of our resin production assets as a natural and next step in the evolution of our portfolio,” said Stephen D Newlin, Chairman, President and CEO, PolyOne Corporation.

“While the sale is dilutive to earnings in the near term, we remain committed to our 2015 earnings target of $2.50 per share. We believe it is in the best interests of our customers, associates and our shareholders to focus on our core competence of material science formulation for specialty applications, rather than base resin production. This is entirely consistent with our mix improvement strategy which has delivered substantial shareholder value over the last five years,” added Newlin.

© WOC News

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