Mexichem Announces the Acquisition of U.K.-Based, Vinyl Compounds Holdings Limited.
Transaction expands Mexichem’s Compounds business and Adds Scale to Company’s UK Operations
November 28, 2016
Mexichem announced that it has acquired Vinyl Compounds Holdings Ltd. (VCHL), a leading U.K.-based technical PVC compounds manufacturer serving a broad range of industries including: building and construction, pipe and profile manufacturers, footwear and consumer goods. Based in Derbyshire, VCHL has annualized revenues of approximately US$40 million.
Mexichem will consolidate VCHL under its Compounds Business Unit, a leading supplier of PVC compound solutions serving the global market and part of the Company’s Vinyl Business Group, which reported sales of $2 billion for the trailing twelve months ended September 30, 2016. The addition of VCHL will expand Mexichem’s ability to meet global PVC compound demand and will enable further vertical integration of its Compounds Business Unit operations through VCHL’s stabilizer technologies and recycled PVC capabilities. VCHL’s key raw materials are PVC resin and plasticizers, which should bring additional synergies to Mexichem’s Vinyl operations.
This transaction is aligned with Mexichem’s strategy of completing bolt-on acquisitions that provide us with access to new geographies and end markets, expand our portfolio of specialty products and serve as a platform for future growth, while enhancing returns on invested capital,” said Sameer S. Bharadwaj, President of the Compounds Business Unit. “We are pleased to partner with Vinyl Compounds Holdings, a company with a strong management team that has achieved consistent sales growth and has developed a loyal and impressive customer base. With the benefit of Mexichem’s resources, VCHL will be able to anticipate and more fully address the needs of its customers as we move forward together.”
Mexichem is one of the world’s largest chemical and petrochemical companies and a leader in the manufacture and supply of plastic piping, contributing to global development by delivering an extended portfolio of products to high growth sectors such as infrastructure, housing, datacom and water cycle management. With operations in over 30 countries worldwide and more than 18,000 employees, Mexichem has annual revenues of US$5.7 billion and has been traded on the Mexican Stock Exchange for over 30 years.