Page 43 - Plastics News January 2020

Business news

Packaging company LLFlex to PolyOne agrees to buy Clariant

invest in new facility in North Masterbatches for $1.6bn
Carolina

lariant has agreed to sell its Masterbatches business
Cto PolyOne for $1.6 billion, which represents
ackaging material and industrial laminate solutions 12.2 times the last 12 months of EBITDA. The deal
Pprovider LLFlex has announced plans to invest $7.6m is expected to close by the third quarter 2020. "It's
in a new facility in High Point at Guilford County in a perfect match and one that aligns with the world's
North Carolina, US.This investment will create 46 work
opportunities in the county. North Carolina Governor Roy
Cooper said: “Another manufacturing jobs announcement
for High Point is good news for the Triad. Companies like
LLFlex will continue to expand in our state because we
prioritise our workforce and the skills needed to keep
business on track." LLFlex Guilford County will provide a
performance-based grant of $90,000 from North Carolina
Fund to finance the investment. LLFlex CEO Victor Dixon
said: “North Carolina’s educated, motivated workforce,
business-friendly landscape and prime geographic location
made ideal for our newest facility, which is a culmination
of our commitment to customer service, production megatrends," PolyOne CEO, President and Chairman
excellence and market share growth. "The new space, new Robert Patterson said in a conference call. He also
equipment and new team members all add value in terms termed the acquisition "truly transformational," adding
of manufacturing prowess, quality control, innovative that the combination will make PolyOne a $4 billion
product ideation and value-added industry partnerships. business that will be "truly global." The deal includes
We would like to thank North Carolina’s wonderful team the sale of Clariant's global masterbatches business,
of public officials for their leadership and guidance and with $1.1 billion in annual sales, and a separate
look forward to a longstanding relationship with this great agreement to sell the masterbatches business in India
for $60 million. Clariant referred to the value of the sale
at nearly $1.6 billion in its news release. Patterson said
the difference between the two companies' numbers is
due to accounting differences based on how each firm
lists leases. Avon Lake, Ohio-based PolyOne was formed
in 2000 and will mark its 20th anniversary in 2020,
Patterson said. It posted 2018 sales of $2.9 billion. With
the Clariant operations, it will add 46 manufacturing
operations and technology centers in 29 countries
and about 3,600 employees. They will be added to
PolyOne's Color, Additives and Inks segment. The closing
of both transactions is subject to all customary closing
state.” The average salary for the expected new positions conditions and regulatory approvals.
could reach $58,021. Currently, the average annual salary Patterson noted that PolyOne will continue to seek
in the county is $47,955. Based in Louisville, Kentucky, out additonal acquisitions to fill openings in its
US, LLFlex specialises in providing custom packaging and composites operations. The divestment fits within the
lamination solutions for construction, wire and cable strategy launched by Clariant in 2015 to streamline
sectors. LLFlex is one of the leading suppliers of cigarette the company's portfolio and concentrate on the three
packaging and custom-printed lamination for tobacco core business areas of Care Chemicals, Catalysis and
products in North America. Natural Resources.

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