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Mexican petrochemicals firm Mexichem SAB is buying German chemical maker Vestolit from Strategic Value Partners for EUR219 million in cash and assumed liabilities.
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 tonnes/year. Marl, Germany-based Vestolit generates annual revenue of EUR477 million.
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.
“The acquisition of Vestolit is in keeping with our strategy of becoming a global, vertically integrated chemical company with a focus on high-end, specialised 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.”
Mexichem, based in Tlalnepantla, Mexico, has acquired more than 15 companies since 2007 and is considering further ventures as the country opens its energy industry to private investment for the first time since 1938.
(PRA)
