M&As: Elementis to buy talc producer Mondo Minerals; Mitsubishi Chemical to acquire PVC compounds business from Welset Plast

British speciality chemicals company Elementis Plc is to buy Netherlands-based Mondo Minerals from US private equity firm Advent International for an enterprise value of US$600 million to expand into talc additives used in a range of products from plastics to cosmetics.

Mondo, which owns talc mines in central Finland, makes industrial talc additives, used to strengthen plastics, provide corrosion resistance to coatings, oxygen barrier to food packaging and UV protection to cosmetics. In 2017, Mondo generated revenues of EUR122 million and underlying earnings (Ebitda) of EYR31 million.

Elementis said it expects the cash-and-debt-free deal to add to margins and adjusted earnings per share in the first full year of ownership.

The acquisition of Mondo will be funded by a US$280 million rights issue and debt facilities of US$775 million, Elementis said.

The acquisition is expected to immediately enhance Elementis’s earnings and strengthen its position as a leading additives company.

In other news, Japan’s Mitsubishi Chemical Corporation (MCC) will acquire the PVC compound business of India-based Welset Plast Extrusions Pvt. Ltd.

Welset is engaged in masterbatch (including PVC masterbatch) and PVC compound businesses in India and other areas. MCC has reached an agreement with the company for the acquisition of the PVC compound business and it will be carried out in the autumn of this year. The acquisition includes a plant in Silvassa, India.

Welset’s PVC compound business has a solid foundation in India and ASEAN markets, says MCC, plus it holds the leading market share in India’s medical field. MCC, meanwhile, manufactures and sells thermoplastic elastomers in India and is expanding its business in the automotive application, mainly for airbag covers.

The acquisition will allow MCC to enter the medical PVC compound business. Furthermore, MCC will strengthen its existing PVC and thermoplastic elastomers businesses in India and ASEAN markets by utilising Welset’s marketing channels and infrastructure.

MCC says it will continue to grow its performance polymers business thorough diversifying its application portfolio and accelerating business development in growth markets.

(PRA)

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