Specialty polymer materials maker
) announced that it has completed the sale of its vinyl
dispersion, blending and suspension resin assets to Mexichem,
S.A.B. de C.V. for $250 million in cash. The sale included only
those assets that were related to resin production including
manufacturing plants in Pedrick town, N.J., Henry, Ill., and a
resin research facility in Avon Lake, Ohio.
PolyOne's resin assets formed a part of its Performance Products
and Solutions segment and are involved in the direct manufacture
of base resins. PolyOne stated that its decision to sell the
assets is a part of its strategy to realign its portfolio.
PolyOne's resin assets generated revenues of $147 million in
2012. The sale is expected to dilute PolyOne's earnings by about
22 cents per share in 2013. However, the company's earnings
target for 2015 remains at $2.50 per share.
The divestiture of the base resin assets is consistent with
PolyOne's strategy of focusing on its core competence of material
science formulation for specialty applications. This is in sync
with the company's improvement plan, which has delivered
substantial shareholder value over the last five years.
PolyOne expects after-tax proceeds of about $150 million and to
recognize a post-tax gain of roughly $140 million on the sale.
PolyOne is among the prominent players in the chemical-plastics
industry along with
Westlake Chemical Corp.
A. Schulman, Inc.
). It is a leading provider of specialized polymer materials,
services and solutions. PolyOne has annual sales of $3 billion
and operations around the world.
PolyOne currently retains a Zacks Rank #3 (Hold).
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