25 March 2013 12:11 [Source: ICIS news]
LONDON (ICIS)--PolyOne has entered into an agreement to sell its vinyl dispersion, blending and suspension resin assets to Mexico-based producer Mexichem for $250m (€193m) in cash, the US polymers company said on Monday.
The sale is subject to regulatory requirements and other customary closing conditions, PolyOne added.
"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," said Stephen Newlin, chairman, president and CEO of PolyOne.
"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," he added.
PolyOne's resin assets are part of its Performance Products and Solutions segment, which generated revenues of $147m in 2012, the company said.
“We believe it is in the best interests of our customers, our 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 past five years,” Newlin said.
Mexichem is a major producer of vinyl products in Latin America.
($1 = €0.77)
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