Mexichem acquires high-density polyethylene pipe manufacturer Dura-Line
Mexichem announced Monday that it has reached an agreement to acquire Dura-Line Corp. from CHS Capital for a total of $630 million in cash and assumed liabilities, advancing Mexichems strategy of global growth in high-end specialty products.
Based in Knoxville, Tennessee, Dura-Line is a global leader in high-density polyethylene (HDPE) conduit, duct and pressure-pipe solutions for telecom and data communications, energy and infrastructure industries.
Dura-Line has manufacturing facilities in North America, India, Oman, Europe, and South Africa.
The acquisition of Dura-Line will be a further step in our strategy of becoming a global, vertically integrated chemical company with a focus on high-end specialized products and solutions, said Antonio Carrillo, CEO of Mexichem.
Dura-Lines technological expertise and leading market position in telecom, data communications and energy piping, including its portfolio of blue-chip customers, will allow us to expand in these fast-growing segments across our global operations," he added. "Dura-Lines international footprint will allow our Integral Solutions business to increase penetration in key markets, and will also provide a platform for growth in new geographies for all of Mexichems products.
The transaction is subject to regulatory approvals and is expected to close by the end of the third quarter of 2014. Once the transaction has closed, Mexichem will consolidate Dura-Line under the companys integral solutions chain for accounting purposes.
Dura-Line will continue to operate under its current management and with its existing brand portfolio.
We are pleased to become part of Mexichems global team. Joining an organization with Mexichems scale will provide strong support for our existing operations and brands, and will enhance the future growth of the business, said Paresh Chari, CEO of Dura-Line.
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