PolyOne Signs Definitive Agreement to Acquire Clariant Color and Additive Masterbatch Business
December 19, 2019
The combined net purchase price is
"This will be a truly transformational acquisition for both
"Over the years, we have invested heavily in commercial resources and innovation, emphasizing higher-margin specialty business in less-cyclical end markets. With this acquisition and the recent divestiture of our Performance Products & Solutions (PP&S) segment, we now expect over 85% of pro forma adjusted EBITDA to be generated from specialty applications," said Mr. Patterson.
"The early synergies and EPS accretion certainly underpin the transaction and its initial value financially, but what I am most excited about is the additional upside from the innovation opportunities of our combined businesses," Mr. Patterson added. "Although we are several years into our specialty journey, we should all view this as a landmark acquisition, with our best days to come."
- Creation of a premier provider of sustainable solutions with over 85% of adjusted EBITDA from specialty formulations and approximately
$4 billionin annual revenue.
- Both businesses offer leading portfolios of materials and supporting services that are aligned with the megatrends of the future, including sustainable solutions for alternative energy, reduced material requirements for packaging, improved recyclability and light-weighting.
- Combined geographic footprint will provide comprehensive, global availability of specialty materials and services for customers around the world.
- The transaction, pro forma for anticipated synergies of
$60 million, is expected to add $0.85to adjusted EPS, excluding the impact of step-up depreciation and amortization related to purchase accounting. PolyOneintends to finance this transaction through a combination of cash on hand, including capital generated from the recent divestiture of its PP&S segment, and proceeds from the issuance of senior unsecured notes and approximately $450 millionof equity.
- Modest initial net debt to adjusted EBITDA leverage of 3.5x (3.1x pro forma for synergies) will be reduced to below 3x within two years.
The acquisition of
A recording of the webcast and the investor presentation will be available at polyone.com/investor. In addition, a recording of the audio will be available for one week, beginning at
- Barrier technologies that preserve the shelf-life and quality of food, beverages, medicine and other perishable goods through high-performance materials that require less plastic
- Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation
- Breakthrough technologies that minimize wastewater and improve the recyclability of materials and packaging across a spectrum of end uses
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. 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: the finalization of the Company's financial statements for the year ending
Net Purchase Price
(Dollars in millions)
Clariant India masterbatch
Less: Lease adjustment
Net purchase price
Plus: Net cash acquired
Funds to Seller
Investor Relations Contact: Joe Di Salvo, Vice President, Treasurer and Investor Relations, PolyOne Corporation, +1 440-930-1921, email@example.com or Media Contact: Kyle G. Rose, Vice President, Corporate Communications, PolyOne Corporation, +1 440-930-3162, firstname.lastname@example.org