· Adjacent expansion of PolyOne’s Specialty platform with entry into advanced composite materials
· Attractive and high-growth end markets with diverse customer base
· Significant opportunity for global expansion and cross-selling by leveraging PolyOne’s infrastructure
· Exceptional and veteran Glasforms management team to remain and accelerate growth with incremental investment and resources from PolyOne
CLEVELAND – PolyOne Corporation (NYSE: POL), a premier provider of specialized polymer materials, services and solutions, today announced the acquisition of Glasforms, Inc., a leading manufacturer of glass and carbon fiber reinforced polymers and advanced composite products. The purchase marks PolyOne’s entry into advanced composite technology, an adjacency consistent with the company’s proven strategy of providing specialty solutions that deliver high value to customers.
With a purchase price of $34 million, PolyOne expects the acquisition to be accretive to earnings in 2013. Glasforms has grown sales at a 36% compound annual growth rate since 2010 and in fiscal year 2012 achieved revenues in excess of $50 million.
Glasforms manufactures advanced composite products for use in demanding applications across the electrical and telecom, energy, transportation, healthcare, and security and defense markets. End products include applications for endoscopy wands, wind turbine blade stiffening components, commercial truck floors and railcar doors for light-weighting, composite utility poles to replace wood and metal, earthquake-proof bridge decks, and specialized rods used in the production of oil and gas.
“Our acquisition of Glasforms marks yet another important milestone in PolyOne’s transformation, as we further broaden our specialty solutions portfolio to include these new and adjacent technologies and applications,” said Stephen D. Newlin, chairman, president and CEO, PolyOne Corporation. “As with past acquisitions, we will utilize an “invest to grow” strategy and leverage PolyOne’s strengths to further enhance the consistent and strong track record of innovation, performance and growth that Glasforms has achieved in its remarkable history.”
The company will continue to operate from its Birmingham, Alabama campus, which includes six buildings and ample capacity for future expansion. The company employs approximately 300 associates, and its founder and president, Peter Pfaff, will continue in his leadership role along with other members of the Glasforms management team.
“When I started Glasforms, it was with a commitment to innovation, quality, growth and unparalleled value to our customers,” said Mr. Pfaff. “I’m so proud of how our team has delivered and am extremely excited that we will take it to the next level by joining PolyOne. As PolyOne’s proven strategy is now Glasforms’s roadmap, it will increase our ability to help customers succeed by collaborating to deliver innovative solutions and unprecedented service in our industry.”
Glasforms will integrate as part of PolyOne’s Specialty platform, under the direction of Craig Nikrant, senior vice president and president, Global Specialty Engineered Materials. “We’re thrilled to have Glasforms join our team. I look forward to working closely with Peter and welcoming all Glasforms associates to our growing global team,” said Mr. Nikrant. “The shared knowledge and best practices between our Specialty businesses provide numerous opportunities for us to innovate, grow and help our customers succeed. Our entry into advanced composites with Glasforms constitutes a clear and immediate foundation from which PolyOne can build in the future.”
Glasforms is one of the world’s leading manufacturers of advanced composite products for use in demanding applications across the electrical & telecom, energy, transportation, consumer & recreation and defense & security end markets. The company offers more than 300 products in its portfolio, and serves more than 500 customers. The company has headquarters and operations in Birmingham, Alabama, and a sales and marketing office in San Jose, California. For more information, visit www.glasforms.com.
PolyOne Corporation, with 2011 revenues of $2.9 billion, is a premier provider of specialized polymer materials, services and solutions. The company is dedicated to serving customers in diverse industries around the globe, by creating value through collaboration, innovation and an unwavering commitment to excellence. Guided by its Core Values, Sustainability Promise and No Surprises PledgeSM, PolyOne is committed to its customers, employees, communities and stockholders through ethical, sustainable and fiscally responsible principles. For more information, visit www.polyone.com.
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Cautionary Note on Forward-Looking Statements
This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements in this document regarding the proposed acquisition of Glasforms, Inc. are forward-looking statements. 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. They use words such as “will,” “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 condition, performance and/or sales. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: unexpected costs that may arise from the Glasforms acquisition; the time and costs required to consummate previously announced acquisitions; any material adverse changes in the business of Glasforms; our ability to retain key personnel in connection with the acquisition or Glasforms; our ability to achieve the strategic and other objectives relating to the Glasforms acquisition, including any expected synergies; our ability to successfully integrate Glasforms and achieve the expected results of the acquisition, including, without limitation, the acquisition being accretive; disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; the financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; the speed and extent of an economic recovery, including the recovery of the housing market; our ability to achieve new business gains; the effect on foreign operations of currency fluctuations, tariffs, and other political, economic and regulatory risks; changes in polymer consumption growth rates where we conduct business; changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; an inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions, and employee productivity goals; an inability to raise or sustain prices for products or services; an inability to maintain appropriate relations with unions and employees; the inability to achieve expected results from our acquisition activities; our ability to continue to pay cash dividends; the amount and timing of repurchases of our common shares, if any; and other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation. The above list of factors is not exhaustive.
We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission.