UK’s Vinyl Compounds acquired by Mexichem

Petrochemicals giant, Mexichem, has acquired Derbyshire-based PVC compounds manufacturer, Vinyl Compounds Holdings (VCHL), for an undisclosed sum.

VCHL will be integrated into Mexichem’s Compounds Business Unit, a supplier of PVC compound solutions serving the global market and part of the Company’s Vinyl Business Group, which reported sales of $2 billion (approx. £1.6bn) for the twelve months ending September 30, 2016.  

Mexichem says the addition of Vinyl Compounds, which achieves annual revenues of US$40 million (approx. £32m), will expand its ability to meet global PVC compound demand, as well as enabling further vertical integration of its Compounds Business Unit operations through VCHL’s stabiliser technologies and recycled PVC capabilities.

VCHL’s key raw materials are PVC resin and plasticisers, which Mexichem says should bring additional synergies to its vinyl operations.

“This transaction is aligned with Mexichem’s strategy of completing bolt-on acquisitions that provide us with access to new geographies and end markets, expand our portfolio of specialty products and serve as a platform for future growth, while enhancing returns on invested capital,” said Sameer S. Bharadwaj, President of the Compounds Business Unit.

“We are pleased to partner with Vinyl Compounds Holdings, a company with a strong management team that has achieved consistent sales growth and has developed a loyal and impressive customer base. With the benefit of Mexichem’s resources, VCHL will be able to anticipate and more fully address the needs of its customers as we move forward together.”