MOSCOW (MRC) -- Mexichem, Mexican PVC and specialty chemicals maker, has announced that it has reached an agreement to acquire Dura-Line Corp. from CHS Capital for a total of USD630 million in cash and assumed liabilities, advancing Mexichem’s strategy of global growth in high-end specialty products, reported Mexichem on its site.
Based in Knoxville, Tennessee, Dura-Line is a global leader in high-density polyethylene (HDPE) conduit, duct and pressure-pipe solutions for telecom and data communications, energy and infrastructure industries.
Dura-Line has manufacturing facilities in North America, India, Oman, Europe, and South Africa.
"The acquisition of Dura-Line will be a further step in our strategy of becoming a global, vertically integrated chemical company with a focus on high-end specialized products and solutions," said Antonio Carrillo, CEO of Mexichem.
"Dura-Line’s technological expertise and leading market position in telecom, data communications and energy piping, including its portfolio of blue-chip customers, will allow us to expand in these fast-growing segments across our global operations," he added. "Dura-Line’s international footprint will allow our Integral Solutions business to increase penetration in key markets, and will also provide a platform for growth in new geographies for all of Mexichem’s products."
The transaction is subject to regulatory approvals and is expected to close by the end of the third quarter of 2014. Once the transaction has closed, Mexichem will consolidate Dura-Line under the company’s integral solutions chain for accounting purposes.
Dura-Line will continue to operate under its current management and with its existing brand portfolio.
As MRC informed previously, in early August 2014, Mexichem SAB de CV has agreed to buy German PVC paste producer Vestolit GmbH from investment company Strategic Value Partners LLC (SVP Global) for 219 million euros (USD293 million). Based in Marl, Germany, Vestolit makes the PVC paste for flooring, wallpaper and underbody protection for cars, according to a news release from SVP. Greenwich, Conn.-based SVP started looking for a buyer for Vestolit in mid July
Mexichem, of Tlalnepantla, an industrial municipality close to Mexico City, is Latin America’s largest manufacturer of PVC pipe, vinyl resins and compounds. Neither it nor SVP mentioned when they expected the deal to be completed.
New York investment banking firm Jefferies LLC advised SVP. JP Morgan Chase & Co was Mexichem’s adviser.