Mexichem Acquires US PVC Producer
Mexichem has acquired Sylvin Technologies, a niche PVC compounds manufacturer, for $39 million on a debt-free and cash-free valuation basis.
Located in Lancaster County in the US state of Pennsylvania, Sylvin makes flexible and semi-rigid vinyl and vinyl alloy compounds. Mexichem said Sylvin’s key raw materials of PVC resin, plasticizers and stabilizers should bring synergies to its vinyl operations.
“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,” said Sameer Bharadwaj, president of Mexichem’s compounds business unit.
Sylvin’s total sales for 2017 are expected to reach $29 million. Mexichem will consolidate then new acquisition into its vinyls business as part of its compound unit. The Mexican company’s vinyls group reported sales of $2.2 billion for the year ended Sept. 30, 2017.
Separately, Mexichem has received approval from the Brazilian antitrust authority CADE for the acquisition of Netafim, an Israeli manufacturer of irrigation equipment.
The decision was published in the Brazilian Official Gazette on Jan. 22. Mexichem announced last August that it was to acquire an 80% stake in Netafim from shareholders Permira, Kibbutz Magal and Kibbutz Hatzerim.