Specialty polymer materials maker
) impending acquisition of plastic products maker
) has been approved by the latter's shareholders. The transaction
is expected to close on Mar 13.
POLYONE CORP (POL): Free Stock Analysis
SCHULMAN(A) INC (SHLM): Free Stock Analysis
WESTLAKE CHEM (WLK): Free Stock Analysis
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PolyOne, in October 2012, landed a deal to buy Spartech for $393
million (including the assumption of Spartech's debt). The
acquisition will enable PolyOne to enter into new markets
including aerospace and security. The deal is expected to be
accretive to the company's adjusted earnings in the first full
year. PolyOne expects annual synergies of $65 million by the end
of the third year following the takeover.
With the Spartech buyout, PolyOne will make certain changes to
its segment structure. Its Specialty Platform will now have three
reportable segments - Global Color, Additives and Inks, Global
Specialty Engineered Materials and the newly created Designed
Structures and Solutions (DSS).
DSS will consist of Spartech's former Custom Sheet and Rollstock
and Packaging Technologies businesses. The entity's Color
and Specialty Compounds business will be integrated into
PolyOne's Global Color, Additives and Inks, Global Specialty
Engineered Materials, and Performance Products and Solutions
units. Moreover, use of the Spartech name will discontinue
Cleveland-based PolyOne is a leading provider of specialized
polymer materials, services and solutions. The company, which has
annual sales of $3 billion, has operations across the globe.
PolyOne, in December 2011, acquired ColorMatrix, a highly
specialized company with a leading market position in liquid
colorants. The acquisition allowed the company to harness its
potential in the specialty business and expand globally.
Moreover, PolyOne recently bought privately-held advanced
composite products maker Glasforms, Inc. for roughly $34 million.
The acquisition offers the company access to advanced composite
technology and boosts its specialty solutions portfolio through
the addition of new and adjacent technologies and applications.
PolyOne expects the acquisition to be accretive to its earnings
PolyOne expects its adjusted earnings per share to rise at a
double-digit clip in 2013. The company expects to boost organic
revenues and earnings through new technology launches,
application development and cross-selling.
PolyOne currently retains a Zacks Rank #3 (Hold).
Other companies in the chemical-plastics space with favorable
Zacks Rank are
Westlake Chemical Corp.
A. Schulman, Inc.
). While Westlake retains a Zacks Rank #1 (Strong Buy), A.
Schulman holds a Zacks Rank #2 (Buy).