SK Capital acquires PVC unit from PolyOne for US$775 mn

SK Capital, a private investment firm focused on the specialty materials, chemicals and pharmaceuticals sectors, has acquired the Performance Products & Solutions business (PP&S) from US compounder PolyOne Corporation in a transaction valued at approximately US$775 million.

PP&S is a plastic compounded solutions provider that makes formulated polyvinyl chloride (PVC) and propylene-based products. It operates 12 manufacturing locations across both North America and Asia and employs approximately 1,100 people.

Jack Norris, a Managing Director of SK Capital, stated, “PP&S is a market leader with a rich heritage in the PVC and polypropylene compounding industry. We are excited about the opportunity to further strengthen the business through both growth and improvement initiatives, similar to how we’ve approached several other investments that were corporate carveouts.”

The transaction is expected to close in the fourth quarter of 2019. Latham & Watkins LLP acted as legal counsel to SK Capital and committed debt financing was provided by Cerberus Business Finance.

SK’s portfolio of businesses generates revenues of approximately US$8.5 billion annually, employs more than 9,000 people globally and operates 74 plants in 25 countries. The firm currently has approximately US$4.6 billion of assets under management.

PolyOne Corporation, with 2018 revenues of US$3.5 billion, is a provider of specialised polymer materials, services and solutions.