PolyOne to acquire ColorMatrix for US$486M
In a move to broaden its offering to specialty additives and colorants used in packaging, PolyOne Corporation is acquiring ColorMatrix Group Inc. for US$486 million.
“I am extremely pleased to announce we’ve reached an agreement to acquire ColorMatrix, an exceptional and unique specialty company,” said Stephen D. Newlin, chairman, president and CEO of Avon Lake, Ohio-based PolyOne. “Much like our acquisition of GLS in 2008, ColorMatrix is a game-changer for PolyOne. With the addition of ColorMatrix, more than 50 per cent of PolyOne’s operating income will now be derived from our specialty businesses, compared to only 2 per cent in 2005.”
PolyOne bought supplier GLS Corp. for US$148.5 million.
Berea, Ohio-based ColorMatrix is a manufacturer of specialty additives, liquid colorant and dosing technologies that serve niche markets, such as rigid beverage and food packaging, performance molding and fiber. The additives are used to increase product shelf life, preserve taste and make products more easily recyclable.
Geographically, PolyOne said, the purchase will expand its presence in Asia and Brazil and provide an entry into the Russian market. A majority of ColorMatrix’s revenue is made outside North America.
According to PolyOne, it intends to finance the purchase with a combination of cash on hand and US$300 million of long-term debt.
The acquisition is expected to close late this year, once it clears regulatory hurdles.