NEWS
PolyOne to buy Clariant masterbatch business
PolyOne is to buy Clariant’s global colour and additive masterbatch business including, as part of a separate transaction, the Swiss firm’s 51% stake in Clariant Chemicals India. The deal is expected to close before Q3 2021. The Clariant business manufactures colour and additive masterbatch and has 46 manufacturing operations and technology centres in 29 countries with some 3,600 employees. Sales amounted to $1.15bn for the last 12 months. The business will become part of PolyOne’s Colour, Additives & Inks segment. The agreed combined
net purchase price amounts to $1.45bn (equivalent to 11.1 times EBITDA for the past 12 months). Synergies of around $60m are expected, according to PolyOne, which said the acquisition will be financed through cash at hand, an
PolyOne Chairman, President and CEO Robert M Patterson
issue of senior unsecured notes and $450m of equity. According to PolyOne, the acquisition will create “a premier provider of sustainable solutions, with over 85% of adjusted EBITDA from speciality formulations.” Factoring in the recent divestiture of its Performance Products & Solutions segment and previous changes to the PolyOne portfolio, the resulting entity will have
annual sales of about $4bn, as well as a broader geographical presence. In a statement, PolyOne said both businesses have leading portfolios of materials that are aligned with the megatrends of the future. “The early synergies and EPS accretion certainly underpin the transaction and its initial value financially, but what I am most excited about is the additional upside from the innovation opportunities of our combined businesses,” said PolyOne Chairman, President and CEO Robert M Patterson.
Clariant Executive Chairman Hariolf Kottmann, said the deal is “a significant milestone on our path to focussing on businesses with above-market growth, higher profitability and stronger cash generation”. The company also plans to sell its pigments business in 2020. �
www.polyone.com �
www.clariant.com
ADN capacity on the up
Announcements by Butachimie and Ascend Performance Materials indicate potential future easing in supply of adiponitrile (ADN), a critical feedstock for PA66 production that has seen the polymer in short supply for the past 18 months or so.
Butachimie has restarted its ADN
facility at Chalampé, France, after a two-month shutdown during which it implemented a €250m maintenance and upgrade programme. The company said the move has upped capacity by about 20%, as well as
www.compoundingworld.com
PA66 is used in applications such as automotive thermostat housings
reducing energy consumption and increasing process reliability. Meanwhile, Ascend
Performance Materials said it has finalised an agreement with the state of Alabama, Morgan County Economic Development Association and the City of Decatur in the US covering economic incentives for the
construction of cogeneration units and expansion of ADN capacity at its site at Decatur. Ascend said construction on the $175m project will will begin in Q2 2020 and end in late 2021. �
www.butachimie.eu �
www.ascendmaterials.com
January 2020 | COMPOUNDING WORLD 5
European chemicals
decline The European Chemical Industry Council (CEFIC) said in December it expects chemical production in the EU to have declined by 1% from 2018 to 2019, which it attributed to slower global economic growth, political uncertainty around Brexit and ongoing trade conflicts.
Demand was said to be notably lower in the automotive and electrical appliances markets but 2.5% up in the
construction industry. Production is expected
to stay at the same level in 2020. “While rising real incomes should keep demand in manufactured goods stable, the continuous political uncertainty and hostile trade environment are unlikely to promote significant growth,” the association said. �
www.cefic.org
IMAGE: ASCEND PERFORMANCE MATERIALS
IMAGE: POLYONE
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60
