PolyOne beefs up colour concentrates portfolio with acquisition

US-based materials company PolyOne Corporation has acquired Magenta Master Fibers (Magenta), a developer of speciality solid colour concentrates for the global fibre industry.

PolyOne purchased Magenta from BASF for US$22 million, which represents a multiple of 6.8x EBITDA. The acquisition is expected to add US$16 million to revenues and be accretive to earnings in 2016.

Magenta’s solutions span a wide range of uses, including clothing and apparel, outdoor equipment, high-performance products and multiple materials used in the transportation industry. And consistent with the megatrend of improving health and wellness, additional textile growth opportunities include applications within the hygiene, healthcare and medical markets.

With operations in Milan, Italy, and Shanghai, China, 65% of Magenta revenues are outside of North America. Magenta will operate within PolyOne’s Global Color, Additives and Inks segment, which last month unveiled the new ColorMatrix Fibre Colourant Solutions that provide late-stage colour injection in fibre applications utilising liquid solutions.

“PolyOne’s unique, customer-first approach to color and additive solutions begins with an unbiased perspective as to the technology. By offering both liquid and solid masterbatch solutions, we better ensure that the chosen technology is the best one for each customer’s specific needs,” explained John V. Van Hulle, president, Global Color, Additives and Inks, PolyOne Corporation. “With our acquisition of Magenta, we’re very pleased to be building this same, deep breadth of speciality solid and liquid colorant solutions for fiber applications.”

PolyOne has in the past acquired other companies offering colour masterbatches, ColorMatrix and Accella.