MOSCOW (MRC) -- Mexichem, Mexican PVC and specialty chemicals maker, has announced that it completed the acquisition of Vestolit GmbH on 1 December 2014, reported Heraldonline.
Mexichem completed the acquisition after receiving all relevant regulatory approvals. Vestolit was acquired from funds managed by Strategic Value Partners LLC for a total purchase price of EUR219 million in cash and assumed liabilities.
As of 1 December, 2014, Vestolit will be consolidated under Mexichem’s chlorine-vinyl chain for accounting purposes.
Based in Marl, Germany, Vestolit is Europe’s only manufacturer of High Impact Suspension PVC (HIS-PVC) for weather-resistant windows and is Europe's second-largest producer of paste PVC for floors and wallpapers. Vestolit also produces alkyl-chlorides, a value-added intermediary used for a variety of chemical and industrial applications and is vertically integrated in a single site from Salt through Specialty PVC. Total installed PVC capacity is 415,000 tons per year.
Mexichem views this transaction as an opportunity to expand its European footprint, enter a new market segment and acquire new technology and best practices.
Vestolit will continue to operate under its current management and with its existing portfolio of branded products.
As MRC wrote previously, in August 2014, Mexichem announced that it had reached an agreement to acquire Dura-Line Corp. from CHS Capital for a total of USD630 million in cash and assumed liabilities, advancing Mexichem’s strategy of global growth in high-end specialty products. Based in Knoxville, Tennessee, Dura-Line is a global leader in high-density polyethylene (HDPE) conduit, duct and pressure-pipe solutions for telecom and data communications, energy and infrastructure industries. Dura-Line has manufacturing facilities in North America, India, Oman, Europe, and South Africa.
Mexichem, of Tlalnepantla, an industrial municipality close to Mexico City, is Latin America’s largest manufacturer of PVC pipe, vinyl resins and compounds. The company has annual revenues of more than USD5 billion and has been listed on the Mexican Stock Exchange for more than 30 years.
MRC