PolyOne Acquires North American Business of ResinDirect
January 12, 2004
CLEVELAND, Jan. 12 /PRNewswire-FirstCall/ -- PolyOne Corporation
(NYSE: POL), a leading global polymer services company, announced today that
it has completed its acquisition of the North American distribution business
of ResinDirect LLC, a wholly owned subsidiary of Louis Dreyfus Energy Services
L.P. Terms of the transaction were not disclosed.
ResinDirect is a worldwide procurement, distribution and marketing company
dealing in the purchase and sale of prime commodity plastic resins. In North
America, ResinDirect distributes approximately 60 million pounds of commodity
plastic resins annually.
ResinDirect's North American distribution business will be integrated into
PolyOne's Distribution business, a leading North American supplier of
engineered and commodity plastic resins of more than a dozen major chemical
companies. PolyOne Distribution has six customer service centers; more than
30 stocking locations, including 10 repackaging plants; and a state-of-the-art
Design Center in Suwanee, Georgia. In 2003 PolyOne Distribution had sales that
exceeded $500 million.
"The acquisition of ResinDirect substantially enhances PolyOne's commodity
resin market position," said Michael L. Rademacher, vice president and general
manager of PolyOne Distribution. "ResinDirect's customers also will benefit
because we will provide them with an expanded product offering."
PolyOne will continue to operate ResinDirect's customer service office in
Davidson, North Carolina.
PolyOne Corporation, with 2002 revenues of $2.5 billion, is an
international polymer services company with operations in thermoplastic
compounds, specialty resins, specialty polymer formulations, engineered films,
color and additive systems, elastomer compounding and thermoplastic resin
distribution. Headquartered in Avon Lake, Ohio, PolyOne has employees at
manufacturing sites in North America, Europe, Asia and Australia, and joint
ventures in North America, South America, Europe and Asia. Information on the
Company's products and services can be found at www.polyone.com .
In this press release, statements that are not reported financial results
or other historical information are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Forward-
looking statements give current expectations or forecasts of future events and
are not guarantees of future performance. They are based on management's
expectations that involve a number of business risks and uncertainties, any of
which could cause actual results to differ materially from those expressed in
or implied by the forward-looking statements. You can identify these
statements by the fact that they do not relate strictly to historic or current
facts. They use words such as "anticipate," "estimate," "expect," "project,"
"intend," "plan," "believe" and other words and terms of similar meaning in
connection with any discussion of future operating or financial performance.
In particular, these include statements relating to future actions;
prospective changes in raw material costs, product pricing or product demand;
future performance or results of current and anticipated market conditions and
market strategies; sales efforts; expenses; the outcome of contingencies such
as legal proceedings; and financial results. Factors that could cause actual
results to differ materially include, but are not limited to: (1) an inability
to achieve or delays in achieving or achievement of less than the anticipated
financial benefit from the initiatives related to restructuring programs
including cost reduction and employee productivity goals; (2) a delay or
inability to achieve targeted debt level reductions through divestitures or
other means; (3) the effect on foreign operations of currency fluctuations,
tariffs, nationalization, exchange controls, limitations on foreign investment
in local businesses and other political, economic and regulatory risks; (4)
changes in U.S., regional or world polymer and/or rubber consumption growth
rates affecting the Company's markets; (5) changes in global industry capacity
or in the rate at which anticipated changes in industry capacity come online
in the polyvinyl chloride (PVC), chlor-alkali, vinyl chloride monomer (VCM) or
other industries in which the Company participates; (6) fluctuations in raw
material prices, quality and supply and in energy prices and supply, in
particular fluctuations outside the normal range of industry cycles; (7)
production outages or material costs associated with scheduled or unscheduled
maintenance programs; (8) costs or difficulties and delays related to the
operation of joint venture entities; (9) lack of day-to-day operating control,
including procurement of raw materials, of equity or joint venture affiliates;
(10) partial control over investment decisions and dividend distribution
policy of the OxyVinyls partnership and other minority equity holdings of the
Company; (11) an inability to launch new products and/or services within the
Company's various businesses; (12) the possibility of goodwill impairment;
(13) an inability to maintain any required licenses or permits; (14) an
inability to comply with any environmental laws and regulations; (15) an
inability or delay in finding buyers of non-core assets for reasonable and
acceptable terms; (16) an inability to access the receivables sale facility
as a result of breaching covenants; (17) any poor performance of our pension
plan assets and any obligation on our part to fund our pension plan; and (18)
any or a delay or inability to bring the North American colors and performance
additives and the engineered materials product platforms to profitability.
We cannot guarantee that any forward-looking statement will be realized,
although we believe we have been prudent in our plans and assumptions.
Achievement of future results is subject to risks, uncertainties and
inaccurate assumptions. Should known or unknown risks or uncertainties
materialize, or should underlying assumptions prove inaccurate, actual results
could vary materially from those anticipated, estimated or projected.
Investors should bear this in mind as they consider forward-looking
We undertake no obligation to publicly update forward-looking statements,
whether as a result of new information, future events or otherwise. You are
advised, however, to consult any further disclosures we make on related
subjects in our Form 10-Q, 8-K and 10-K reports to the Securities and Exchange
Commission. You should understand that it is not possible to predict or
identify all such factors. Consequently, you should not consider any such
list to be a complete set of all potential risks or uncertainties. (Ref.
SOURCE PolyOne Corporation
CONTACT: Dennis Cocco, Vice President, Investor Relations &
Communications of PolyOne Corporation, +1-440-930-1538