WCA January 2012

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Industry news
Wire & Cable ASIA – January/February 2012 18
PolyOne Corporation, a global
provider of specialised polymer
materials, services and solutions, is
buying ColorMatrix Group, Inc, an
innovator in liquid colourants, additives
and fluoropolymers.
“I am extremely pleased to announce
we’ve reached an agreement to
acquire ColorMatrix, an exceptional
and unique specialty company,” said
Stephen D Newlin, chairman, president
and chief executive officer, PolyOne
Corporation.
“Much like our acquisition of GLS in
2008, ColorMatrix is a game-changer
for PolyOne. With the addition of
ColorMatrix, more than 50 per cent of
PolyOne’s operating income will now
be derived from our specialty
businesses, compared to only two per
cent in 2005,” he added.
ColorMatrix is a leading manufacturer
of performance-enhancing speciality
additives, liquid colourant and dosing
technologies that serve diverse niche
markets, such as rigid beverage and
food packaging, performance
moulding and fibre.
The company’s leadership position in
technology is evidenced by an IP
portfolio of 162 patents and 107
pending applications worldwide. Its
solutions in packaging, in particular,
offer customers exceptional
performance attributes such as
increased product shelf life, taste
preservation and improved
recyclability.
Additionally, ColorMatrix is a global
provider of colourant for
fluoropolymers and provides speciality
additives that support fluoropolymers’
unique high-performance properties
such as lubricity, high-level heat
insulation, static dissipation and x-ray
opaqueness.
Through its April 2011 acquisition of
Gayson, ColorMatrix expanded its
portfolio to include short turnaround,
custom colour dispersions used in
silicone processing for a broad range
of medical, consumer and automotive
applications.
Under the leadership of CEO John Gelp
and a strong management team,
ColorMatrix achieved sales and EBITDA
of approximately $196.8 million and
$43.6 million respectively for the 12
months ended 30th June, 2011.
“Since 2002, ColorMatrix has
organically increased EBITDA at an
annualised growth rate of 16 percent,
and our purchase price of $486 million
recognises the earnings and growth
potential of this specialty business,”
said Mr Newlin.
“We believe we can accelerate this
growth by leveraging our global scale
and through additional investment in
commercial resources, just as we’ve
done with GLS.”
“Not only will the acquisition of
ColorMatrix accelerate our
specialisation strategy, it also
expands our geographic presence in
Asia and Brazil and creates an entry
point into Russia,” said Robert M
Patterson, executive vice president
and chief financial officer.
Approximately 70 per cent of
ColorMatrix’s revenues are outside
North America.
PolyOne intends to finance the
purchase price of $486 million, which
includes transaction tax benefits of
$10 million, with a combination of
cash on hand and the addition of
approximately $300 million of long
term debt.
The acquisition is being made on a
cash-free, debt-free basis, and the
purchase price is subject to a
customary working capital adjustment
and other closing conditions.
“Net of interest expense on the long
term debt, and the incremental
investments in commercial resources,
we expect ColorMatrix to be modestly
accretive to earnings in 2012
($0.02-$0.03 per share) and to add
approximately $0.10-$0.12 per share
in 2013,” added Mr Patterson.
Polyone Corporation – China
Fax: +86 21 5080 1199
Email:
Website :
PolyOne buys ‘unique
specialty’ ColorMatrix