Tuesday, August 5, 2014

México/Germany: Mexichem SAB Acquires Germany's Vestolit GmbH for 219 Million Euros

According to The Latin American Tribune, Mexican petrochemical firm Mexichem SAB announced on Tuesday (August 5) the acquisition of Germany’s Vestolit GmbH, a leading European producer of polyvinyl chloride resin, for $292 million (219 million euros) in cash and assumed liabilities.

“The acquisition of Vestolit is in keeping with our strategy of becoming a global, vertically integrated chemical company with a focus on high-end, specialized products,” Mexichem CEO Antonio Carrillo said in a statement.

The deal, which is subject to regulatory approval, is expected to be finalized in the fourth quarter of this year, Mexichem said.

COMMENT: Vestolit is Europe’s only manufacturer of high-impact PVC for applications such as weather-resistant windows.

“This transaction is an opportunity to expand our European footprint, enter a new market segment and acquire new technology,” Carrillo said.

Vestolit’s current management will remain in place, Mexichem said.