PolyOne acquires colourant producer Mesa, divests subsidiary DSS

PolyOne Corporation, a leading provider of specialised polymer materials, services and solutions has acquired acquisition of Mesa, a US producer of colour and additive materials and services. Mesa is Polyone’s fourth specialty colour acquisition in the last eight months, according to Robert M Patterson, Chairman, President and CEO of PolyOne.

The privately-owned, Mesa produces both solid and liquid colourant technologies and operates two facilities located in Phoenix, Arizona and Fort Smith, Arkansas. It serves a diverse range of end markets including packaging, consumer products and outdoor equipment.

Meanwhile, Polyone is also selling its Designed Structures and Solutions (DSS) business, including its sheet, rollstock and packaging assets, to Arsenal Capital Partners for US$115 million.

DSS manufactures engineered polymer structures, rigid barrier packaging, and specialty cast acrylics.

This strategic move is “the best course of action for our customers, associates and shareholders," Patterson commented on the divestiture.

The sale of DSS is subject to satisfaction of regulatory requirements and other customary closing conditions, which the company expects to be completed in the third quarter of 2017. Proceeds from the sale will be used to pay down short term borrowings and fund ongoing growth initiatives.

The DSS business will be classified as "held for sale" and be reported as discontinued operations, in accordance with the GAAP (Generally Accepted Accounting Principles), the accounting standard adopted by the US Securities and Exchange Commission, Polyone also stated in a press release.