PolyOne Corporation, a leading global provider of specialised polymer materials, services, and solutions, has announced it has entered into a definitive agreement 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 PP based solutions, as well as contracting manufacturing services, primarily serving the North American construction and automotive end markets.
Robert M. Patterson, Chairman, President, and CEO of PolyOne Corporation, said: “We conducted what became a very competitive bidding process for our PP&S segment.”
“Ultimately, we determined that divesting the business to SK Capital Partners would provide greater flexibility to accelerate our specialty growth strategy and is in the best interest of customers, employees, and shareholders.”
“In the short-term, proceeds from the sale will be used to pay down debt on our revolving line of credit and reduce our overall net debt to EBITDA leverage from 3.2 to 2.0 by year end.”
“Longer-term, we can further refine our focus on investing in and growing our three remaining segments.”