AVON LAKE, Ohio—Materials leader PolyOne Corp. had a full agenda for its second-quarter earnings call.
Officials with the Avon Lake-based firm covered a pair of recent acquisitions, as well as a recent sale and some personnel moves. In their spare time, they addressed solid financial results for the quarter and for the first half of 2017.
PolyOne spent a total of $143 million to acquire Rutland Holding Co., a maker of plastisol compounds and printing inks, and color concentrates producer Mesa Industries Inc., officials said on the call. The Rutland deal was announced in early June, while the Mesa transaction followed in early July. Adding those two firms will increase PolyOne's annual sales by $75 million, they said.
In between those two deals, PolyOne on June 29 said it planned to sell its Designed Structures & Solutions unit — a major plastic sheet producer with annual sales of around $400 million — to Arsenal Capital Partners for $115 million.
DSS had struggled financially since PolyOne acquired it as part of Spartech Corp. in 2013.
DSS "had been disappointing in the last three years," Robert Patterson, chairman, president and CEO, said on the call. "We invested to improve its profitability, but we weren't successful. Selling to Arsenal was our best option."
Patterson also described Rutland and Mesa as "specialty bolt-on opportunities." He added that the three recent transactions were "an important inflection point" for PolyOne, which ranks as North America's largest compounder and concentrate maker and as one of the region's largest resin distributors.
Completing the deals "allows us to focus on our core areas of expertise, and to focus on accelerating innovation and service to our customers," Patterson said.