(RTTNews) - Polymer materials company PolyOne Corp. (POL) agreed Monday to sell its Performance Products and Solutions (PP&S) business to SK Capital Partners for $775 million in cash. PolyOne expects to record a pre-tax gain of approximately $600 million at the time the sale is completed.
With sales of approximately $700 million, PP&S is a global provider of formulated PVC and polypropylene based solutions, as well as contract manufacturing services, primarily serving the North American Construction and Automotive end markets.
The company noted it expects full year 2019 adjusted earnings per share from continuing operations to expand 6 to 8 percent over the prior year.
In accordance with US GAAP, the company expects the PP&S business will be classified as "held for sale" and reported as a discontinued operation.
The sale is subject to satisfaction of regulatory requirements and other customary closing conditions, which the company expects to be completed during the fourth quarter.
In the short term, proceeds from the sale will be used to pay down debt on PolyOne's revolving line of credit and reduce its overall net debt to EBITDA leverage from 3.2 to 2.0 by year-end.
In the longer term, PolyOne looks to further refine its focus on investing in and growing its three remaining segments: Specialty Engineered Materials; Color, Additives, and Inks; and Distribution.
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