Mexichem Buys German Chemical Producer for $292 Million

laht.com

MEXICO CITY – Mexican petrochemical firm Mexichem SAB announced on Tuesday 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.

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.