WCA January 2012

Industry news

PolyOne buys ‘unique specialty’ ColorMatrix

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“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, 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

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 30 th June, 2011. 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.” “Since 2002, ColorMatrix

Polyone Corporation – China Fax : +86 21 5080 1199 Email : info@polyone.com Website : www.polyone.com

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Wire & Cable ASIA – January/February 2012