PolyOne Corporation Completes Acquisition of ColorMatrix Group

Through its April 2011 acquisition of Gayson, ColorMatrix expanded its portfolio to include enhanced speed-to-market, custom color dispersions used in silicone processing for a broad range of medical, consumer and automotive applications.

Dec 27 2011 --- PolyOne Corporation, a premier global provider of specialized polymer materials, services and solutions, announced it has completed the acquisition of ColorMatrix Group, Inc., a highly specialized company with a premier suite of additive technologies and the leading market position in liquid colorants.

“This acquisition marks a significant milestone in PolyOne’s transformation to a global, specialty company,” said Stephen D. Newlin, chairman, president and chief executive officer, PolyOne Corporation. “We’re proud and excited to welcome all ColorMatrix employees and customers who have joined the PolyOne family.”

“We have said before that this is a game-changer for PolyOne, as we now expect to derive more than 50% of our earnings from our specialty platform. I am confident that we will be able to accelerate growth and expand our leading market positions as we leverage ColorMatrix’s proprietary technology and PolyOne’s commercial resources and global scale.”

ColorMatrix is a leading manufacturer of performance-enhancing specialty additives, liquid colorant and dosing technologies that serve diverse niche markets, such as rigid beverage and food packaging, performance molding and fiber. The ColorMatrix leadership position in technology is evidenced by an intellectual property 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.

Further, ColorMatrix is a leading provider of colorant for fluoropolymers and provides specialty 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 enhanced speed-to-market, custom color dispersions used in silicone processing for a broad range of medical, consumer and automotive applications.

In connection with the acquisition, PolyOne secured a new $300 million Term Loan B, replaced its expiring accounts receivable securitization facility with a new $300 million asset-based revolving credit facility, and redeemed its remaining 2012 senior notes.

“There was substantial investor interest in our new credit facilities, and I am pleased that we were able to secure both at better than expected rates,” said Robert M. Patterson, executive vice president and chief financial officer. “I attribute this to our strong track record of free cash flow generation and the significant improvement in the underlying mix of our earnings, the majority of which will now come from our specialty platform.”

The new $300 million, six-year Term Loan B has an initial coupon of 5.00% with an all in yield of 5.60% inclusive of original issue discount and fees. The five-year revolving credit facility is undrawn and has current availability of approximately $150 million.

This feature is provided by Food Ingredients First’s sister website, Packaging Insights.

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