24 October 2012 12:51 [Source: ICIS news]
LONDON (ICIS)--PolyOne will acquire US-based plastic sheet, compounds and packaging solutions producer Spartech for a total transaction value of around $393m (€303m), the US-based compounder said on Wednesday.
PolyOne said Spartech will expand its specialty portfolio with adjacent technologies in attractive end markets. The transaction is expected to close in the first quarter of 2013.
Spartech stockholders will receive $2.67 in cash and 0.3167 shares of PolyOne common stock for each share of Spartech common stock.
“Based on the closing price of PolyOne shares on Tuesday, 23 October, Spartech stockholders will receive cash and stock valued at $8.00 per Spartech common share, representing a total transaction value of approximately $393m, including the assumption of Spartech’s net debt of $142m,” PolyOne said.
“For Spartech investors, the proposed transaction represents a premium of 56% to the value of its stock on October 23, 2012, the last trading day prior to the announcement of the transaction,” it added.
Chairman, president and CEO of PolyOne, Stephen Newlin, said: “Spartech expands PolyOne’s specialty portfolio with adjacent technologies in attractive end markets where we already participate as well as new ones like aerospace and security.”
“By combining Spartech’s leading market positions in sheet, rigid barrier packaging and specialty cast acrylics with PolyOne’s capabilities, we can accelerate growth for both companies,” he added.
President and CEO of Spartech Corporation, Vicki Holt, said: “PolyOne and Spartech have complementary growth strategies, and by combining our resources we expect to accelerate our shift to specialty applications with a more competitive cost structure, enhanced customer relationships, improved market access and increasingly innovative technologies.”
Spartech reported sales and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of approximately $1.2bn and $53.1m, respectively, for the 12 months ended 4 August 2012.
($1 = €0.77)
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