CLEVELAND, July 26, 2016 /PRNewswire/ -- PolyOne Corporation (NYSE: POL), a premier global provider of specialized polymer materials, services and solutions, today announced the acquisition of two specialty businesses from Gordon Holdings. The acquired businesses design and produce innovative, lightweight, high-performance solutions, utilizing advanced composite technology and state-of-the-art manufacturing capabilities.
Bolstering PolyOne's existing portfolio of thermoset composite solutions is the acquisition of Gordon Composites, which develops high strength profiles and laminates for use in vertical and crossbow archery, sports and recreation equipment, prosthetics, and office furniture systems.
The second acquired business, Polystrand, operates on the leading edge of continuous reinforced thermoplastic composite technology, a next generation material science that delivers the high strength and lightweight characteristics of composites, further enhanced with the design flexibility to form more complex shapes. Current application usage includes materials for the aerospace, transportation, outdoor and security and protection markets. Both acquired businesses will join PolyOne's existing portfolio of complementary solutions in a new comprehensive platform to be called PolyOne Advanced Composites.
"With these acquisitions we've built upon our past success and portfolio of composite solutions to now serve our customers more comprehensively than ever before," said Craig Nikrant, president, Specialty Engineered Materials, PolyOne Corporation. "We also have now immediately established PolyOne as a leading innovator and producer of continuous reinforced thermoplastic composite technology. We expect this technology to become a platform of the future for companies whose products demand strength and design flexibility."
The purchase price for both businesses was $85.5 million. The price includes all assets related to the businesses, including intellectual property, trademarks and production assets. PolyOne expects the acquisitions to add $40 million to revenues and be accretive to earnings in 2017.
"Gordon Composites and Polystrand are exceptional businesses that were born and bred through entrepreneurial spirit, innovation and the hard work of dedicated employees over the last 60 plus years," said Mike Gordon, chairman and president, Gordon Holdings, Inc. "We searched for the perfect home as we looked to the future of our businesses – in a global company that shared our passion for customer service. PolyOne was the clear, best choice. It's a highly-respected company where our aspirations, ideals and innovation can flourish, and we can continue to push the limits of composite material science and its many potential uses."
"I'm extremely pleased to have these two great businesses and their employees join the PolyOne team. They are great additions to our growing specialty portfolio, which remains unmatched in the industry," said Robert M. Patterson, chairman, president, and chief executive officer, PolyOne Corporation. "Ultimately, we make these investments for our customers – to deliver their needed innovation and growth. As we invest in these businesses and leverage our commercial and operational excellence, our PolyOne Advanced Composites group will play an important role in achieving our 2020 Platinum Vision."
PolyOne Corporation, with 2015 revenues of $3.4 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 shareholders through ethical, sustainable and fiscally responsible principles. For more information, visit www.polyone.com.
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 announced acquisition of the Gordon Composites and Polystrand businesses; any material adverse changes in the acquired businesses; our ability to achieve the strategic and other objectives relating to the acquired businesses, including any expected synergies; our ability to successfully integrate the acquired businesses and achieve the expected results of the acquisition, including, without limitation, the acquisition being accretive; 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 companies into our operations, retain the management teams of acquired companies and retain relationships with customers of acquired companies; 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.
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SOURCE PolyOne Corporation