Photo: Mexichem Acquires PolyOne Assets
Mexichem, one of Latin America’s largest chemical and petrochemical companies, said it was acquiring all of U.S.-based PolyOne Corporation’s vinyl dispersion, blending and suspension resin business.
Mexichem is acquiring the non-core resin assets for $250 million in cash, PolyOne said.
The deal will allow the Mexican chemical company “to participate in the North American market with highly specialized products and in specific niche markets,” Mexichem chlorovinyl operations director Carlos Manrique said.
The acquisition will also bolster the company’s operations, “thanks to the intrinsic competitive advantages of the North American region due to shale gas, as well as Mexichem’s vertical integration,” Manrique said.
“Mexichem is a proven leader and has substantial expertise in base resin manufacturing. We believe they will be able to more fully unlock the potential of our resin production assets, and we look forward to working with them in the future as a supplier,” PolyOne chairman, president and CEO Stephen D. Newlin said in a statement.
The transaction is subject to regulatory approval and customary closing conditions, the companies said.
The board of directors of state-owned oil giant Petroleos Mexicanos, or Pemex, approved the formation earlier this year of a $556 million joint venture with Mexichem.
Mexichem has more than 10,000 employees and annual revenues of over $3 billion.