TLALNEPANTLA, Mexico--(BUSINESS WIRE)--Mexichem, S.A.B. de C.V. (BMV:MEXCHEM*) (“the Company” or “Mexichem”) announced today that it has signed a definitive agreement to acquire VESTOLIT GmbH (“VESTOLIT”), Europe’s 6th largest PVC manufacturer, from accounts and funds managed by Strategic Value Partners LLC for a total of €219 million in cash and assumed liabilities, supporting Mexichem’s strategy of global growth in high-end specialty products.
The acquisition is subject to regulatory approvals and is expected to close in the fourth quarter of 2014. At that point, Mexichem will consolidate VESTOLIT under the Company’s Chlorine Vinyl chain for accounting purposes.
Based in Marl, Germany, VESTOLIT is Europe’s only manufacturer of High Impact Suspension PVC (HIS-PVC) for weather-resistant windows and is Europe’s second-largest producers of paste PVC for floors and wallpapers. VESTOLIT also produces alkyl-chlorides, a value-added intermediary used for a variety of chemical and industrial applications. Total installed PVC capacity is 415,000 tons per year.
“The acquisition of VESTOLIT is in keeping with our strategy of becoming a global, vertically integrated chemical company with a focus on high-end, specialized products,” said Antonio Carrillo, CEO of Mexichem. “This transaction is an opportunity to expand our European footprint, enter a new market segment and acquire new technology and best practices for our global Chlorine Vinyl chain.”
VESTOLIT will continue under current management once the transaction is completed and will operate with its existing brand portfolio.
“We are pleased to be joining Mexichem, a globally-recognized name in specialty chemicals. This transaction assures the future of the VESTOLIT businesses, and our customers will benefit from dealing with a company with international reach and multiproduct offering,” said Michael Traeger CEO of VESTOLIT.
VESTOLIT has sales and marketing representatives in 35 countries.
JP Morgan acted as advisor to Mexichem in the transaction.
In addition to historical information, this press release contains "forward-looking" statements that reflect management's expectations for the future. The forward-looking statements contained in this press release include, without limitation, statements relating to Mexichem’s expectations regarding the opportunities and strengths of the combined operations of Mexichem and VESTOLIT, as well as expectations regarding product offerings, growth opportunities, value creation, and financial strength. A variety of important factors could cause results to differ materially from such statements. These factors are noted throughout Mexichem’s regulatory filings. The forward-looking statements included herein represent Mexichem’s views as of the date of this press release. Mexichem undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.