Mexican petrochemical producer Mexichem said it had signed a "definite agreement" with US-based private equity investor Strategic Value Partners to acquire German PVC producer Vestolit for $292 million in cash and assumed liabilities.

Following regulatory approval, the asset transfer is expected to be finalized in the fourth quarter of this year, Mexichem said.

The German company is Europe's sole manufacturer of high-impact PVC specialties for applications such as weather-resistant windows.

"The acquisition of Vestolit is in keeping with our strategy of becoming a global, vertically integrated chemical company with a focus on high-end, specialized products," Mexichem CEO Antonio Carrillo said in a statement, adding that the PVC producer's current management will be retained.

Vestolit CEO Michael Träger said the link-up with its new Mexican owner "is a major step that will strengthen the company's back-integrated production site at Marl."  

SVP acquired the PVC producer, which has annual sales of €500 million, EBITDA of €40 million and capacity to produce 400,000 t/y of PVC, in 2006 from a consortium led by private investor Candover Partners.