Axiall Corp. sells two PVC business units
Both transactions involve facilities in Ontario.
February 29, 2016 by Canadian Plastics
In transactions that involve two manufacturing facilities in Ontario, Atlanta-based chemical supplier and building products maker Axiall Corporation has sold two PVC-related business units.
Axiall is selling its window and door profiles business, a component of Royal Building Products, to Los Angeles, Calif.-based private equity firm OpenGate Capital. The Axiall compounding facility located in Concord, Ont. is included in the window and door profiles transaction. It is a primary supplier to the window and door profiles business.
The purchase price has not been announced. The sale is expected to close on March 31, 2016.
“As we refine our portfolio, we are pleased to have reached an agreement to sell our window and door profiles business to OpenGate Capital,” Axiall president and CEO Tim Mann said in a Feb. 25 statement. “This is our fourth divestiture of non-core assets since April 2015, which allows us to better focus on our core chlorovinyls and derivatives. In particular, selling this business leaves Royal Building Products with the solid core product lines that generate better EBITDA margins, namely our siding, trim, molding, fittings and pipe businesses.”
Also on Feb. 25, Axiall announced it has sold part of its PVC additives business to Galata Chemicals of Southbury, Conn. That business, operating as Solucor, includes a plant in Bradford, Ont. The Bradford facility, which includes approximately 60 employees who will transfer with the sale to Galata, manufactures additives for rigid PVC applications, focusing on a broad mix of process aids and impact modifiers, among other products.
The purchase price in the Galata transaction has not been disclosed. The transaction became effective on Feb. 29.