PolyOne buys Kraton’s TPE unit for US$72 mn

Expanding on its global footprint and expertise in thermoplastic elastomer (TPE), US specialist materials supplier PolyOne Corporation has acquired certain technologies and assets from Kraton Performance Polymers for US$72 million in cash. The two companies also entered into a supply agreement, whereby Kraton will provide PolyOne certain raw materials used in production for the acquired business.

The end markets utilising the acquired technologies span new and fast growing applications in adhesive and removable protective films, as well as existing applications served by PolyOne, such as packaging, medical devices and personal care products.

"Since our highly successful TPE acquisition of GLS in 2008, we've continually invested in, globalized and grown in TPE innovation and its broad value-added uses," said Robert M. Patterson, President/CEO of PolyOne Corporation. "We are very pleased to have made this investment for our customers and their product design, development and performance goals."

Kevin M. Fogarty, President/CEO of Kraton said, "It allows PolyOne and Kraton to focus on our core competencies and help our customers with new and unique solutions that differentiate them in the marketplace."

Taking into consideration future polymer sales under the supply agreement, the net revenue impact resulting from the sale of the compounding business is less than 2% of Kraton's consolidated revenue for fiscal year 2014, reported the company. As a leading provider of specialty polymers and styrenic block copolymers, Kraton says it will continue to serve growth in demand for specialised HSBC and USBC polymers to support the global compounding market through its versatile family of styrenic block copolymers that add substantial value to a wide variety of products. As the largest global provider in the pine chemicals industry, the company's pine-based speciality products are sold into adhesive, road and construction and tire markets, and it produces and sells a broad range of chemical intermediates into markets that include fuel additives, oilfield chemicals, coatings, metalworking fluids and lubricants, inks, flavours and fragrances and mining.

Kraton intends to use proceeds from the sale to reduce outstanding indebtedness.