PolyOne to Sell Non-Core Resin Assets to Mexichem
CLEVELAND, March 25, 2013 /PRNewswire/ -- PolyOne Corporation (NYSE: POL), a premier provider of specialized polymer materials, services and solutions, announced it has entered into an agreement in which the company will sell its vinyl dispersion, blending and suspension resin assets to Mexichem, S.A.B. de C.V. for $250 million in cash. The sale is subject to satisfaction of regulatory requirements and other customary closing conditions.
PolyOne's resin assets are part of its Performance Products and Solutions segment and generated revenues of $147 million in 2012.
"Since we began our specialty transformation, we have divested commodity equity investments including Oxy Vinyls in 2007 and SunBelt in 2011 and reinvested the proceeds to accelerate the growth of our specialty offerings," said Stephen D. Newlin, chairman, president and chief executive officer, PolyOne Corporation. "As our only remaining business involved in the direct manufacture of base resins, we view the sale of our resin production assets as a natural and next step in the evolution of our portfolio."
The pending sale's impact to PolyOne earnings in 2013 is dependent on numerous factors, including timing of the transaction's close. It is anticipated that dilution on an annualized basis will be approximately $0.22 per share.
"While the sale is dilutive to earnings in the near term, we remain committed to our 2015 earnings target of $2.50 per share. We believe it is in the best interests of our customers, associates and our shareholders to focus on our core competence of material science formulation for specialty applications, rather than base resin production. This is entirely consistent with our mix improvement strategy which has delivered substantial shareholder value over the last five years," Mr. Newlin added.
"Mexichem is a proven leader and has substantial expertise in base resin manufacturing. We believe they will be able to more fully unlock the potential of our resin production assets, and we look forward to working with them in the future as a supplier," said Mr. Newlin.