Chemicals company PolyOne Corp (POL.N) struck a deal to purchase ColorMatrix from private equity investor Audax Group for $486 million, picking up a leading manufacturer of colorants and other additives for plastics. PolyOne said on Monday that after the deal, more than half of its operating income will come from its specialty chemicals businesses, as opposed to just 2 percent in 2005. The deal should add 2 to 3 cents to earnings per share next year, PolyOne said in a statement, and 10 to 12 cent per share in 2013. ColorMatrix had sales and EBITDA of around $196.8 million and $43.6 million, respectively, for the year ended June 30. PolyOne plans to finance the purchase price of the deal by using cash on hand and around $300 million of long-term debt. It expects the deal to close later this year. Reuters previously reported that Audax had put ColorMatrix on the block in July, citing sources familiar with the matter.
PolyOne Corporation (PolyOne) is a provider of specialized polymer materials, services and solutions with operations in thermoplastic compounds, specialty polymer formulations, color and additive systems, thermoplastic resin distribution and specialty polyvinyl chloride (PVC) resins. Shares of POL fell by 6.82% or $-0.73/share to $9.98. In the past year, the shares have traded as low as $9.96 and as high as $16.61. On average, 977929 shares of POL exchange hands on a given day and today's volume is recorded at 1782817.
