PolyOne selling former Spartech business for $115 million
Material supplier PolyOne is selling its Designed Structures and Solutions business, which includes sheet, rollstock and packaging assets, to New York City-based investment firm Arsenal Capital Partners.
Material supplier PolyOne Corporation is selling its Designed Structures and Solutions (DSS) business, which includes sheet, rollstock and packaging assets, to New York City-based investment firm Arsenal Capital Partners for US$115 million.
DSS includes most of the former Spartech Corporation, which was acquired by PolyOne in 2013.
“The decision to divest DSS comes after evaluating several strategic options for the business and concluding this is the best course of action for our customers, associates and shareholders,” said Robert M. Patterson, PolyOne’s president and CEO. “I’m pleased that we have come to agreement with Arsenal who is very well positioned to complete the transformation work we have begun and serve DSS customers going forward.”
“Looking back at the Spartech acquisition, there were a number of positive, value-creating elements of the deal,” Patterson continued. “These include the colour concentrate and formulation assets that have seamlessly integrated into the other segments of PolyOne, as well as the beginnings of our IQ Design services which are now broadly used across the entire company.”
Shortly after the Spartech acquisition, PolyOne closed six former Spartech sheet plants in the U.S., followed by the shuttering of a Spartech sheet and rollstock plant in Granby, Que. in 2015.
The sale is expected to be completed in the third quarter of 2017.