PolyOne to acquire ColorMatrix

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PolyOne to acquire ColorMatrix
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Cleveland, OH - PolyOne has agreed to acquire ColorMatrix Group, a global innovator in liquid colorants, additives and fluoropolymers. “I am extremely pleased to announce we’ve reached an agreement to acquire ColorMatrix, an exceptional and unique specialty company,” said Stephen D. Newlin, chairman, president and chief executive officer, PolyOne. “Much like our acquisition of GLS in 2008, ColorMatrix is a game-changer for PolyOne. With the addition of ColorMatrix, more than 50% of PolyOne’s operating income will now be derived from our specialty businesses, compared to only 2% in 2005.” ColorMatrix is the leading manufacturer of performance-enhancing specialty additives, liquid colorant and dosing technologies. The company’s leadership position in technology is evidenced by an IP portfolio of 162 patents and 107 pending applications worldwide. Further, ColorMatrix is a leading global provider of colorant for fluoropolymers and provides specialty additives that support fluoropolymers’ unique high-performance properties such as lubricity, high-level heat insulation, static dissipation and x-ray opaqueness. PolyOne intends to finance the purchase price of $486 million, which includes transaction tax benefits of $10 million, with a combination of cash on hand and the addition of approximately $300 million of long term debt. This acquisition is subject to regulatory approvals and is expected to close late this year. PolyOne management will discuss the acquisition in more detail during its regularly scheduled third quarter earnings conference call to be held on October 26, 2011.