NEW YORK—In a major compounding deal, PolyOne is selling its Performance Products & Solutions unit to SK Capital Partners for $775 million in cash. That unit includes one of North America's largest PVC compounding businesses.
PP&S posted sales of almost $700 million last year, representing about 20 percent of total sales for Avon Lake, Ohio-based PolyOne.
The unit also makes polypropylene-based compounds and provides contract manufacturing. It sells mainly into North American construction and automotive end markets.
SK is a New York-based private equity firm. It has become a major player in plastic additives through its acquisitions of part of Chemtura in 2013 and of SI Group last year. SK had operated the Chemtura businesses as Addivant. The combined additives firm operates as SI Group.
In a news release, PolyOne CEO Robert Patterson said that his firm "conducted what became a very competitive bidding process for our PP&S segment."
He added that "Ultimately, we determined that divesting the business to SK Capital Partners would provide greater flexibility to accelerate our specialty growth strategy and is in the best interest of customers, employees and shareholders."
After the sale, Patterson said that PolyOne "can further refine our focus on investing in and growing our three remaining segments: Specialty Engineered Materials; Color, Additives, and Inks; and Distribution."