PolyOne Corp. agrees to acquire ColorMatrix Group Inc. for US$486 mln

05-Oct-11
Polymer producer PolyOne Corp. plans to acquire ColorMatrix Group Inc., a supplier of liquid colorants, additives and fluoropolymers for US$486 mln. Both the companies are located in the Cleveland area. Acquisition of ColorMatrix will not only will accelerate Polyone’s specialization strategy, but also expand its geographic presence in Asia and Brazil and creates an entry point into Russia. About 70% of ColorMatrix's revenues are outside North America. The acquisition is subject to regulatory approvals and is expected to close late this year. According to PolyOne, ColorMatrix had sales of nearly $197 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of $43.6 million in the 12 months that ended last June 30. “Since 2002, ColorMatrix has organically increased EBITDA at an annualized growth rate of 16%, and our purchase price of $486 million recognizes the earnings and growth potential of this specialty business,” said Stephen Newlin, PolyOne chairman, president and CEO. Mr. Newlin said PolyOne officials “believe we can accelerate this growth by leveraging our global scale and through additional investment in commercial resources” at ColorMatrix. Mr. Newlin said the addition of ColorMatrix means more than 50% of PolyOne's operating income now will be derived from its specialty businesses, “compared to only 2% in 2005."
  More News  Post Your Comment

Previous News

Next News

{{comment.Name}} made a post.
{{comment.DateTimeStampDisplay}}

{{comment.Comments}}

COMMENTS

0

There are no comments to display. Be the first one to comment!

*

Name Required.

*

Email Id Required.

Email Id Not Valid.

*

Mobile Required.

Email ID and Mobile Number are kept private and will not be shown publicly.
*

Message Required.

Click to Change image  Refresh Captcha
Complete Herbert Olbrich cushion vinyl flooring line

Complete Herbert Olbrich cushion vinyl flooring line