Mexichem agrees to acquire VESTOLIT for 219 million euro
Acquisition of Europe's 6th largest PVC manufacturer supports Mexichem's focus on growth in high-end specialty products.
Tlalnepantla, State of Mexico, August 4th, 2014 – 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 had sales and marketing representatives in more than 35 countries.
JP Morgan acted as advisor to Mexichem in the transaction.