New York-based Lion Chemical Capital and ACI Capital have agreed to buy the elastomers and performance additives division from publicly traded PolyOne Corp. for $120 million (€99 million).
According to a statement, $106 million will be paid in cash and $14 million in the form of a note. The deal is expected to close in the third quarter.
Headquartered in Solon, Ohio, Polyone’s elastomers and performance additives unit manufactures its products for the transportation, electrical, industrial and printing industries. The company also has manufacturing facilities in the US, Mexico and the UK, and will open a rubber compounding facility in China later this year. Revenues for the year ended in March totaled $349 million.
Lion Chemical managing director Peter De Leeuw led the deal and is the prospective chairman of the new company that will be formed as a result of the acquisition. Managing director Ezra Field represented ACI Capital. Lion Chemical is a private equity firm focusing exclusively on chemical and related businesses. Private investment firm ACI specialises in middle-market management buyouts and growth capital investments across various sectors in both public and private companies.
PolyOne, a $2 billion international polymer maker, last year announced its intention to divest several business units not related to its plastics compounding, color and additives masterbatch, and distribution businesses, including the elastomers and performance additives business.