PolyOne sells SunBelt investment to Olin Corp.
Compounder PolyOne Corporation has sold its 50 per cent interest in the SunBelt Chlor Alkali Partnership to its partner Olin Corporation, an alkali producer, for US$132.3 million in cash.
Clayton, Mo.-based Olin is now the 100 per cent owner of the SunBelt operation, which produces the PVC feedstock chlorine and caustic soda at a plant in McIntosh, Ala. The plant has an estimated 350,000 tons of membrane technology capacity.
According to a news release, Olin is also assuming Cleveland-based PolyOne’s guarantee of US$43 million of SunBelt debt.
During 2010, the joint venture – formed in 1996 – generated approximately US$70 million of earnings before interest, taxes, depreciation and amortization.
“For PolyOne, the sale of SunBelt represents another step in our transformation and portfolio repositioning as we intend to use the proceeds to accelerate specialty platform growth,” said Stephen D. Newlin, PolyOne’s chairman, president and CEO.