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Lion Chemical Capital and ACI Capital Close Acquisition of PolyOne's Elastomers & Performance Additives Business, Now Known as Excel Polymers
NEW YORK—August 6, 2004—An investor group led by Lion Chemical Capital LLC and ACI Capital Co., Inc. announced today that it had closed the acquisition of PolyOne Corporation's Elastomers and Performance Additives division. The acquired company is now known as Excel Polymers. PolyOne received gross proceeds before associated fees and costs of approximately $120 million, of which $106 million was paid in cash and $14 million was paid in the form of a note from the buyer. AmSouth Capital provided senior debt financing and Ableco Finance LLC provided second lien financing.
Excel Polymers is a leading merchant provider of customized, high-performance elastomer materials and additives for use in diverse end markets, including the construction, transportation, electrical, industrial and printing industries. Headquartered in Solon, Ohio, the group operates five manufacturing facilities in the United States and one each in Mexico and the United Kingdom. Its first rubber compounding facility in China is slated to open near Shanghai later this year. Revenues for the four quarters ended June 30, 2004 were $356 million.
"We are delighted to acquire this well managed, innovative market leader and share Excel's vision of expanding its already prominent position in the rubber compounding industry." said Peter De Leeuw, managing director of Lion Chemical Capital and the Chairman of the new company. "We anticipate no immediate change in the business practices of Excel, and no effect on Excel's customers, suppliers or employees. John E. Quinn, formerly the unit's Vice President and General Manager, will become the company's new CEO."
"We're very pleased with our investment in Excel Polymers," added Ezra S. Field, Managing Director of ACI Capital. "John Quinn and his management team have done a great job leading the business through a transition period and have positioned it well for future growth as a standalone entity. We look forward to working in partnership with management and employees towards continued future success."
"My team and I look forward to working closely with Lion Chemical Capital and ACI Capital," Quinn commented. "This new partnership will enable us to continue developing innovative product and service solutions that support our customers' needs, and to strengthen our leadership position in the rubber compounding industry worldwide. The acquisition is good news for our customers, employees and the communities where we live and work."
The signing of the transaction was announced on June 29, 2004. The buyers were advised by Omar Abboud of Morgan Joseph and represented by White & Case. The sellers were advised by Citigroup and represented by Jones Day.
About Lion Chemical Capital LLC
Lion Chemical Capital is a private equity firm focused on investing in premier businesses operating in the chemical and related industries. Lion leverages its founders' extensive experience in the chemical industry, executive management, private equity and investment banking. Target investments are highly selective and possess key attributes such as market and technological leadership and strong management. For more information, please visit www.lionchemicalcapital.com.
About ACI Capital Co., Inc.
ACI Capital is a private investment firm with nearly 50 years of history leading middle-market management buyouts and growth capital investments across a broad spectrum of industries throughout North America. ACI Capital makes equity investments in profitable, market leading public and private companies, partnering with management to increase the value of their businesses. For more information, please visit www.acicapital.com.
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