Pipe maker Mexichem buys Wavin for US$703 million
Mexican plastic pipe manufacturer Mexichem is acquiring Dutch peer Wavin for US$703 million, in a move designed to gain the company a greater foothold in Europe.
Mexico City-based Mexichem, one of the leading plastic pipe makers in Latin America, said the acquisition of Wavin will make it the world’s biggest, with annual sales of 4 billion euros.
Wavin is the market leader in Europe, with sales of 2 billion euros in 2010; Mexichem, which controls its entire plastic pipe supply chain, from salt mines to manufacturing to distribution, currently makes four per cent of its total sales in Europe.
According to a joint press release, Wavin will retain a separate operating and legal structure with headquarters in Zwolle, the Netherlands; the company’s brand will be retained and its R&D innovation centre will be kept in the Netherlands.
The companies said they have little overlap in their current markets, meaning anti-competitiveness hurdles are unlikely. “The geographic footprint and product portfolio of Wavin and Mexichem are highly complementary,” said Ricardo Gutierez Munoz, Mexichem chief executive, in the statement.
The deal is expected to be complete by the end of March 2012.