Chemical company Mexichem has announced it will acquire Pennsylvania-based Sylvin Technologies, a company dedicated to the production of PVC.
The move has an Enterprise Value of $39 million based on a debt free cash free valuation. In a statement, the company said that Sylvin will contribute around $29 million in annual sales.
“The company has a 30-year history serving a wide range of industries including cable, electrical, industrial, automotive, medical and food products,” the company said.
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. Our Vinyl Business Group reported sales of $2.2 billion for the trailing twelve months ended September 30, 2017.
“By combining Sylvin’s customer-focused business model, their strong workforce and the ability to develop their applications with Mexichem’s global composite business, this will allow the company to offer greater added value to its American clients,” explained Antonio del Valle of Mexichem.
Sylvin’s key raw materials are PVC resins, plasticizers and stabilizers, which should bring synergies to the operations of the Mexichem Vinyl Business Group.
“This transaction gives continuity to Mexichem’s strategy of completing acquisitions as they expand their portfolio of specialized products and applications and give access to new end markets and customers,” said Sameer S. Bharadwaj, president of the Business Unit of Mexico.