Specialty polymer materials maker PolyOne Corporation ( POL ) has purchased specialty assets from Accella Performance Materials for $49 million. Accella, which was bought by private equity firm Arsenal Capital Partners in 2012, is a leading liquid polymer formulations maker.
The acquired assets are not related to Accella's polyurethanes and recycled rubber business and are an excellent fit with PolyOne's Global Color, Additives and Inks division. The purchased business offers specialty coatings solutions and value-added services in a vast spectrum of applications including consumer products, interior and under-the-hood automotive parts, outdoor recreational equipment and food packaging.
The acquisition complements PolyOne's existing specialty portfolio and broadens its foothold in rapidly growing end-use markets including consumer packaging and transportation. It also provides meaningful cross-selling opportunity by leveraging the company's infrastructure.
The buyout will drive the growth of PolyOne's specialty platform with expanded range of liquid polymer solutions. The company registered revenues of roughly $510 million from its specialty platform in third-quarter 2014, accounting for roughly 53% of its total sales. PolyOnes envisions the acquisition to add $35 million to its sales and be accretive to earnings next year.
On the other hand, the divestment enables Accella to focus more on polyurethane systems and recycled rubber products that are strategically related to several of its target markets. The Valence Group served as financial advisor while DLA Piper LLP acted as legal advisor to Accella on the deal.
PolyOne, which has annual sales of $3.8 billion, possesses a strong innovation pipeline with unique, differentiated solutions for high-growth markets such as health care, transportation, consumer and packaging that are expected to drive growth in the years to come.
PolyOne is a Zacks Rank #4 (Sell) stock.
Other companies in the specialty chemical space worth considering include Minerals Technologies Inc. ( MTX ), NL Industries Inc. ( NL ) and Taminco Corporation ( TAM ). All of them hold a Zacks Rank #1 (Strong Buy).