PolyOne to Acquire Certain Assets of Novatec Plastics
May 16, 2005
CLEVELAND, May 16, 2005 /PRNewswire-FirstCall via COMTEX/ -- PolyOne Corporation
(NYSE: POL), a leading global compounding and North American distribution
company, announced today that it has signed a definitive agreement to acquire
certain assets of Novatec Plastics Corporation, a compounding business owned
by PVC Container Corporation.
PolyOne will acquire Novatec's equipment, compounding recipes and customer
list. Production will be transferred to PolyOne facilities over the next few
months, after which the Novatec plant will close. Purchase price was not
revealed. The deal is expected to close by the end of May.
"The acquisition of this small but well-run compounder is another
demonstration of PolyOne's commitment to continue investing in its Vinyl
Compound business unit," said Robert M. Rosenau, vice president and general
manager, North American Vinyl Compounds.
The transaction will expand PolyOne's leadership in the custom profile and
custom molding markets. Separately, PolyOne and PVC Container Corporation
have entered into discussions for PolyOne to become a supplier of vinyl
packaging compounds to PVC Container Corp.
"Since last year, we have added equipment and increased production
capacity at several of our Vinyl Compound facilities," Rosenau said. "The
Novatec acquisition affirms the strategic importance to PolyOne of this core
business and our commitment to the marketplace."
About PVC Container
PVC Container Corporation, founded in 1968 with executive offices in
Eatontown, New Jersey, with reported revenues of approximately $97 million for
its fiscal year ended June 30, 2004, and manufacturing facilities in
Pennsylvania, New Jersey, New York, South Carolina and Illinois, is a major
producer of plastic containers for the packaging industry. It operates
several wholly owned subsidiaries including Novapak Corporation, for the
manufacture and sale of general line plastic bottles, the Airopak Corporation
and Marpac Industries, Inc., responsible for manufacturing and sales of
specialty plastic containers, and Novatec Plastics Corporation, a leading
supplier of PVC compounds and specialty plastic, alloys in the United States.
The Company's stock is traded under the symbol (OTC Bulletin Board: PVCC.OB).
PolyOne Corporation, with 2004 annual revenues of approximately $2.2
billion, is a leading global compounding and North American distribution
company with continuing operations in thermoplastic compounds, specialty
polymer formulations, color and additive systems, and thermoplastic resin
distribution. Headquartered in northeast Ohio, PolyOne has employees at
manufacturing sites in North America, Europe, Asia and Australia, and joint
ventures in North America and South America. Information on PolyOne's
products and services can be found at http://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; customer supply agreements; the completion of the
acquisition of the Novatec assets; and financial results. Factors that could
cause actual results to differ materially include, but are not limited to, the
risk that the acquisition, of the Novatec assets, which remains subject to due
diligence and the satisfaction or waiver of customary closing conditions, will
not be completed.
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
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could vary materially from those anticipated, estimated or projected.
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advised, however, to consult any further disclosures we make on related
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and Exchange Commission. You should understand that it is not possible to
predict or identify all risk factors. Consequently, you should not consider
any list to be a complete set of all potential risks or uncertainties.
SOURCE PolyOne Corporation
PolyOne Investors & Media, Dennis Cocco, Vice President, Investor Relations &
Communications of PolyOne Corporation, +1-440-930-1538