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PolyOne buys Clariant colour, additive masterbatch part

25
Dec '19
Pic: PolyOne
Pic: PolyOne
PolyOne Corporation, a leading global provider of specialised polymer materials, services and solutions, is buying the global colour and additive masterbatch business of Clariant. The two have signed a deal in this connection. PolyOne is also buying the colour and additive masterbatch business of Clariant Chemicals India and has signed a related agreement.

The combined net purchase price is $1.45 billion.

"This will be a truly transformational acquisition for both PolyOne and Clariant customers and employees around the world. Together, we will benefit from the combined ingenuity, passion and expertise of two global leaders in colour design, additive technologies and sustainable solutions," said Robert M Patterson, chairman, president and chief executive officer, PolyOne Corporation.

Clariant's colour and additive masterbatch business, which had sales of $1.15 billion for the last twelve months, includes specialty technologies and solutions for high-growth global end markets, such as consumer, packaging, and healthcare. The Clariant business includes 46 manufacturing operations and technology centres in 29 countries and approximately 3,600 employees, who will join PolyOne's colour, additives and inks segment.

"Over the years, we have invested heavily in commercial resources and innovation, emphasising higher-margin specialty business in less-cyclical end markets. With this acquisition and the recent divestiture of our Performance Products and Solutions (PP and S) segment, we now expect over 85 per cent of pro forma adjusted EBITDA to be generated from specialty applications," said Patterson.

"The early synergies and EPS accretion certainly underpin the transaction and its initial value financially, but what I am most excited about is the additional upside from the innovation opportunities of our combined businesses," Patterson added. "Although we are several years into our specialty journey, we should all view this as a landmark acquisition, with our best days to come."

The acquisition of Clariant's colour and additive masterbatch business has been approved by the Boards of Directors at the companies and is expected to close in the middle of next year as it is subject to the satisfaction or waiver of customary closing conditions, including the receipt of regulatory approvals in various global jurisdictions. Committed financing for the acquisitions is being provided by Citi, Morgan Stanley & Co, and Wells Fargo.

Fibre2Fashion News Desk (SV)


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