Mexichem S.A.B. de C.V. (Tlalnepantla, Mexico; www.mexichem.com) has signed a definitive agreement to acquire polyvinyl chloride (PVC) specialist Vestolit GmbH (Marl, Germany; www.vestolit.de) from Strategic Value Partners LLC, acting on behalf of its managed funds and accounts.
The acquisition of Vestolit - one of the leading producers of PVC-Specialties in Europe - is supporting Mexichem’s strategy of becoming a global, vertically integrated chemical company with a focus on high-end, specialized PVC products over the whole value chain. With this merger, Mexichem and Vestolit will be the leading producer of PVC-Specialties worldwide.
"The wide product portfolio and the global market coverage of our new parent company in combination with our strong position in Europe will lead to further growth for the company’s business", said Michael Träger, CEO of Vestolit. "Joining forces with the strategic partner Mexichem is a major step forward in expanding the position as the leading producer of PVC-Specialties worldwide. This transaction is a clear sign in strengthening our production site in Marl."
Vestolit’s management team will continue to run the company and will keep the brand Vestolit, which has been established since 1949.
The acquisition is subject to regulatory approvals and is expected to close in the fourth quarter of 2014.