30 January 2013 16:14 [Source: ICIS news]
HOUSTON (ICIS)--PolyOne’s planned $393m (€291m) deal to acquire plastic sheet, compounds and packaging solutions producer Spartech is still on track to be completed in the first quarter of 2013, the CEO of the US-based polymer firm said on Wednesday.
PolyOne and Spartech agreed the deal in October last year. However, a date for a shareholder vote to approve the transaction has yet to be announced.
Spartech’s portfolio will “provide an impactful complement” to PolyOne and create synergies related to manufacturing, duplicate company costs, and cross-selling, PolyOne CEO Stephen Newlin told analysts in an update during his company’s fourth-quarter results conference call.
“Our initial review of the Spartech technologies and product lines confirmed that these [synergy] opportunities are abundant,” he said.
However, Newlin added that pending shareholder approval, PolyOne was “somewhat limited” in the discussions it could have with Spartech about future plans.
Chief financial officer Richard Diemer added that PolyOne plans to issue new long-term debt before closing the Spartech deal.
PolyOne on Tuesday reported a 6% year-on-year increase in 2012 fourth-quarter revenues, with operating income improving in all of the company’s three core businesses – specialties, performance products and distribution.
($1 = €0.74)
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