Mexichem gains Sylvin Technologies in US
Chemical and petrochemical company Mexichem has acquired US-based PVC compounds manufacturer Sylvin Technologies for $39m.
The deal is set to expand Mexichem’s compounds presence in the US market with a complementary product and application portfolio.
Upon completion of the transaction, the company will combine Sylvin under its Vinyl Business Group as part of its Compounds Business Unit, which supplies PVC compound solutions for the global market.
Mexichem CEO Antonio Carrillo said: "The acquisition of Sylvin is a further step towards downstream integration in specialty products with higher margins that enables sustainable growth of our return on invested capital over our weighted average cost of capital in the long-run."
Mexichem Compounds Business Unit president Sameer Bharadwaj said: "This transaction continues Mexichem’s strategy of completing bolt-on acquisitions that expand its portfolio of specialty products and applications and give access to new end markets and customers, driving future growth.
"These products and applications can be further leveraged globally as we expand in other parts of the world."
The integration of Sylvin’s customer-focused business model and application development capabilities will enable Mexichem’s global compounds business to provide better value to its combined US customers.
In addition, Sylvin’s main raw materials PVC resin, plasticisers, and stabilisers are expected to bring synergies to Mexichem’s Vinyl operations.
For the 12 months up to 30 September 2017, the Vinyl Business Group reported sales of $2.2bn.
Mexichem manages its operations in 37 countries and operates 120 facilities worldwide.