logo
Plus   Neg
Share
Email

PolyOne To Sell PP&S Business To SK Capital Partners For $775 Mln In Cash

Polymer materials company PolyOne Corp. (POL) agreed Monday to sell its Performance Products and Solutions (PP&S) business to SK Capital Partners for $775 million in cash. PolyOne expects to record a pre-tax gain of approximately $600 million at the time the sale is completed.

With sales of approximately $700 million, PP&S is a global provider of formulated PVC and polypropylene based solutions, as well as contract manufacturing services, primarily serving the North American Construction and Automotive end markets.

The company noted it expects full year 2019 adjusted earnings per share from continuing operations to expand 6 to 8 percent over the prior year.

In accordance with US GAAP, the company expects the PP&S business will be classified as "held for sale" and reported as a discontinued operation.

The sale is subject to satisfaction of regulatory requirements and other customary closing conditions, which the company expects to be completed during the fourth quarter.

In the short term, proceeds from the sale will be used to pay down debt on PolyOne's revolving line of credit and reduce its overall net debt to EBITDA leverage from 3.2 to 2.0 by year-end.

In the longer term, PolyOne looks to further refine its focus on investing in and growing its three remaining segments: Specialty Engineered Materials; Color, Additives, and Inks; and Distribution.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The Federal Trade Commission said it will challenge the proposed merger between two Philadelphia-area hospital systems as the deal could reduce competition, resulting in raised prices in both Philadelphia and Montgomery counties. The FTC issued an administrative complaint to block the proposed merger of Jefferson Health and Albert Einstein Healthcare Network. Step2 Co. LLC recalled about 20,500 units of Little Helper's children's grocery shopping carts for possible laceration hazard, the U.S. Consumer Product Safety Commission said in a statement. These include about 3,500 units sold in Canada. The company said the shopping cart's basket can break into sharp pieces, leading to a laceration hazard. Wendy's Co. joined the growing list of fast-food chains that are launching plant-based meat options. The fast food chain has introduced "The Plantiful," a plant-based burger, at its restaurants across Canada. Wendy's said it formulated its own recipe in-house, unlike other fast-food chains who have relied on Beyond Meat or Impossible Foods to introduce their plant-based meat alternatives.
Follow RTT
>