Mexichem acquires German PVC producer Vestolit
Mexichem has signed a definitive agreement to acquire Germany-based Vestolit, Europes sixth-largest polyvinyl chloride (PVC) manufacturer, officials announced on Tuesday.
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 specialty products.
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 Europes 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 European 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 brand portfolio.
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 countries.
Jefferies was the financial advisor to SVP for the transaction, while JP Morgan was the advisor to Mexichem.
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