TLALNEPANTLA, US: Mexichem said that it has purchased a leading UK-based technical (polyvinyl chloride) PVC compounds manufacturer, Vinyl Compounds Holdings Ltd (VCHL).
VCHL serves a broad range of industries including building and construction, pipe and profile manufacturers, footwear and consumer goods. Based in Derbyshire, VCHL has annualised revenues of approx $40 million.
Mexichem will combine VCHL under its compounds business unit, a leading supplier of PVC compound solutions serving the global market and part of the Company’s Vinyl Business Group, which reported sales of $2 billion for the trailing twelve months ended September 2016.
The addition of VCHL will expand Mexichem’s ability to meet global PVC compound demand and will enable further vertical integration of its Compounds Business Unit operations through VCHL’s stabiliser technologies and recycled PVC capabilities. VCHL’s key raw materials are PVC resin and plasticisers, which should bring additional synergies to Mexichem’s Vinyl operations.
“This deal is aligned with Mexichem’s strategy of completing bolt-on acquisitions that provide us with access to new geographies and end markets, expand our portfolio of speciality products and serve as a platform for future growth, while enhancing returns on invested capital,” said Sameer Bharadwaj, president of the compounds business unit.
“We are pleased to partner with Vinyl Compounds Holdings, a company with a strong management team that has achieved consistent sales growth and has developed a loyal and impressive customer base. With the benefit of Mexichem’s resources, VCHL will be able to anticipate and more fully address the needs of its customers as we move forward together,” added Bharadwaj.
Read More: Mexichem acquires PVC compounds manufacturer in UK
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