CLEVELAND, Feb. 3, 2016 /PRNewswire/ -- Expanding on its global footprint and expertise in thermoplastic elastomer (TPE) innovation and design, PolyOne Corporation (NYSE: POL) today announced it has acquired certain technologies and assets from Kraton Performance Polymers, Inc. (NYSE: KRA). The two companies also entered into a supply agreement, whereby Kraton will provide PolyOne certain raw materials used in production for the acquired business.
The end markets utilizing the acquired technologies span new and fast growing applications in adhesive and removable protective films, as well as existing applications served by PolyOne, such as packaging, medical devices and personal care products. The purchase price of $72 million represents a multiple of 9x EBITDA.
"Since our highly successful TPE acquisition of GLS in 2008, we've continually invested in, globalized and grown in TPE innovation and its broad value-added uses," said Robert M. Patterson, president and chief executive officer, PolyOne Corporation. "We are very pleased to have made this investment for our customers and their product design, development and performance goals."
"I view this transaction as a win for both companies, and most importantly, for our respective shareholders and customers," said Kevin M. Fogarty, president and chief executive officer of Kraton. "It allows PolyOne and Kraton to focus on our core competencies and help our customers with new and unique solutions that differentiate them in the marketplace."
Mr. Patterson added, "The integration will be swift and seamless, as we leverage our existing TPE know-how, global reach, and commercial expertise to help our customers in new and innovative ways."
PolyOne Corporation, with 2014 revenues of $3.8 billion, is a premier provider of specialized polymer materials, services and solutions. The company is dedicated to serving customers in diverse industries around the globe, by creating value through collaboration, innovation and an unwavering commitment to excellence. Guided by its Core Values, Sustainability Promise and No Surprises PledgeSM, PolyOne is committed to its customers, employees, communities and stockholders through ethical, sustainable and fiscally responsible principles. For more information, visit www.polyone.com.
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In this press release, statements that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. They use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: unexpected costs that may arise from the acquisition of the Kraton TPE business; any material adverse changes in the acquired Kraton TPE business; our ability to achieve the strategic and other objectives relating to the acquired Kraton TPE business, including any expected synergies; our ability to successfully integrate the acquired Kraton TPE business and achieve the expected results of the acquisition; our ability to realize anticipated savings and operational benefits from the realignment of assets, including the closure of manufacturing facilities; the timing of closings and shifts of production to new facilities related to asset realignments and any unforeseen loss of customers and/or disruptions of service or quality caused by such closings and/or production shifts; separation and severance amounts that differ from original estimates; amounts for non-cash charges related to asset write-offs and accelerated depreciation realignments of property, plant and equipment, that differ from original estimates; our ability to identify and evaluate acquisition targets and consummate acquisitions; the ability to successfully integrate acquired businesses into our operations, retain the management teams of acquired businesses and retain relationships with customers of acquired businesses; disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; the financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; the speed and extent of an economic recovery, including the recovery of the housing market; our ability to achieve new business gains; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks; changes in polymer consumption growth rates and laws and regulations regarding the disposal of plastic in jurisdictions where we conduct business; changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; an inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions and employee productivity goals; an inability to raise or sustain prices for products or services; an inability to maintain appropriate relations with unions and employees; our ability to continue to pay cash dividends; the amount and timing of repurchases of our common shares, if any; and other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation. The above list of factors is not exhaustive.
We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission.
SOURCE PolyOne Corporation