• PT Youtube
  • PT Facebook
  • PT Linkedin
  • PT Twitter
8/19/2019 | 1 MINUTE READ

PolyOne to Divest Performance Products & Solutions Business Segment

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

Broad range of Geon PVC portfolio, Maxxam PP compounds and manufacturing services under PP&S included in recently signed agreement.

PolyOne Corp., Avon Lake, Ohio, has entered into a definitive agreement to sell its Performance Products and Solutions (PP&S) business to SK Capital Partners--a New York –based private equity firm focusing on specialty materials, chemicals, and healthcare, for $775 million in cash  (SK Capital Partners’ company portfolio includes SI Group, manufacturer of performance additives). PP&S is a global provider of formulated PVC and PP-based solutions. Principally, this includes the legacy and comprehensive portfolio of Geon flexible and rigid PVC materials, plastisols and powder coating formulations used in applications ranging from appliance housings to window profiles to wire jacketing.

Also included is the company’s tolling and contract manufacturing services, which primarily serve the North American construction and automotive end markets, and also manufactures the broad line of Maxxam specialty PP compounds including reinforced and flame-retardant formulations for automotive and E/E applications.

After conducting a very competitive bidding process, it was determined that SK Capital Partner would both provide the greatest  flexibility for PolyOne to accelerate its specialty growth strategy and also be in the best interest of customers, employees and shareholders, according to president, chairman and CEO Robert M. Patterson. "In the short term, proceeds from the sale will be used to pay down debt on our revolving line of credit and reduce our overall net debt to EBITDA leverage from 3.2 to 2.0 by year-end. Longer term, we can further refine our focus on investing in and growing our three remaining segments: Specialty Engineered Materials; Color, Additives, and Inks; and Distribution."

PolyOne expects to record a pre-tax gain of approximately $600 million at the time the sale is completed and expects full year 2019 adjusted earnings per share from continuing operations to expand 6-8% over the prior year. "We continue to benefit from recent investments made in composites and other sustainable solutions which is helping us to deliver adjusted EPS growth in an otherwise challenging environment," said Patterson.

The sale is subject to satisfaction of regulatory requirements and other customary closing conditions, which the company expects to be completed during the fourth quarter.

RELATED CONTENT

  • Thermoplastic Polyesters: It's Time to Know Them Better

    There’s more to TP polyesters than you think. You may know PET, PBT, and PETG—but what about PCT, PCTG, PCTA, and PTT? If you’re not sure what they are, how their properties compare, and who sells them, we have the answers—and lots of new developments to report.

  • Injection Molding Wood-Plastic Composites

    Injection molders are just becoming acquainted with this new class of molding materials. It pays to learn some basic processing guidelines before jumping in.

  • The New Look in Plastic -- It's Paper!

    Synthetic paper based on filled polyethylene or polypropylene film has been around for decades without causing much excitement--until recently.