CLEVELAND (June 29)—PolyOne Corp. has agreed to sell its Elastomers and Performance Additives business for about $120 million to an investors' group led by two New York-based private equity firms.
The deal, expected to close in the third quarter, is subject to customary closing conditions and the buyers' receipt of their financing, PolyOne said.
The buyers are being led by Lion Chemical Capital L.L.C. and ACI Capital Co. Inc., which said they anticipate no immediate change in the unit's business practices and emphasized that the current management team, headed by John E. Quinn, vice president and general manager, will remain in place.
The purchase agreement provides that PolyOne will receive gross proceeds before associated fees and costs of about $120 million, of which $106 million will be paid in cash and $14 million in the form of a note from the buyer. This price is within PolyOne's range of estimates for the sale of the unit, which generated sales of $349 million for the 12-month period ended March 31.
Lion Chemical said it focuses on investing in businesses operating in the chemical and related industries, while ACI said it makes equity investments in profitable, market-leading public and private companies, partnering with management to increase value of their businesses.