Mexichem, a Mexican manufacturer of plastic pipes and one of the largest chemical and petrochemical companies in the world, announced that it has acquired Sylvin Technologies Inc., a niche PVC compounds manufacturer based in Pennsylvania for US$ 39 million based on a debt free cash free valuation.
Sylvin is expected to have total sales of US$ 29 million for the full year of 2017. It has a 30-year history of serving a broad range of industries including: wire and cable, electrical, industrial, automotive, medical and food products.
Mexichem will consolidate Sylvin under the Company’s Vinyl Business Group as part of its Compounds Business Unit, a leading supplier of PVC compound solutions serving the global market.
According to Mexichem, its Vinyl Business Group reported sales of US$ 2.2 billion for the trailing twelve months ended September 30, 2017.
“Combining Sylvin’s customer-focused business model, strong team and application development capabilities with Mexichem’s global compounds business will allow Mexichem to deliver even greater value to its combined U.S. customers,” said the company in a statement.
Sylvin’s key raw materials are PVC resin, plasticizers and stabilizers, which should bring synergies to Mexichem’s Vinyl operations.
“The acquisition of Sylvin is a further step towards downstream integration in specialty products with higher margins that enables sustainable growth of our return on invested capital over our weighted average cost of capital in the long run,” Antonio Carrillo, CEO of Mexichem remarked.