Mexichem has signed a definitive agreement to acquire
Germany-based Vestolit, Europe
polyvinyl chloride (PVC) manufacturer, officials announced on
Mexichem is acquiring Vestolit from accounts and funds
managed by Strategic Value Partners (SVP) for a total of
219 million in cash and assumed liabilities, supporting
Mexichems strategy of global growth in high-end
The acquisition is subject to regulatory approvals and is
expected to close in the fourth quarter of 2014. At that
point, Mexichem will consolidate Vestolit under the
companys chlorine vinyl chain for accounting purposes.
Based in Marl, Germany, Vestolit is Europe
s only manufacturer of
high-impact suspension PVC (HIS-PVC) for weather-resistant
windows and is Europes second-largest producers of
paste PVC for floors and wallpapers.
Vestolit also produces alkyl-chlorides, a value-added
intermediary used for a variety of chemical and industrial
applications. Total installed PVC capacity is 415,000 tpy,
the company said.
The acquisition of Vestolit is in keeping with our
strategy of becoming a global, vertically integrated chemical
company with a focus on high-end, specialized products,
said Antonio Carrillo, CEO of Mexichem. This
transaction is an opportunity to expand our Europe
an footprint, enter a new
market segment and acquire new technology
and best practices for
our global chlorine vinyl chain.
Vestolit will continue under current management once the
transaction is completed and will operate with its existing
We are pleased to be joining Mexichem, a
globally-recognized name in specialty chemicals. This
transaction assures the future of the Vestolit businesses,
and our customers will benefit from dealing with a company
with international reach and multiproduct offering,
said Michael Traeger, CEO of Vestolit.
Vestolit has sales and marketing representatives in 35
Jefferies was the financial advisor to SVP for the
transaction, while JP Morgan was the advisor to Mexichem.