Written on 03.01.2011 - Industry
You have these options:

Mexichem to purchase AlphaGary

Rockwood Holdings, Inc. announced 17 December that it has reached an agreement to sell its AlphaGary plastic compounding business to Mexican PVC producer Mexichem S.A.B.de C.V. for USD 300 million in cash. AlphaGary is the largest division in Rockwood's Specialty Compounds segment. The sale will include the AlphaGary US, AlphaGary UK LTd and AlphaGary Canada business units.

Commenting on the transaction, Rockwood Chairman and CEO Seifi Ghasemi said that the company expects to use the proceeds of the sale to reduce debt. He added, "The completion of the sale of this compounding business is another step in concentrating our portfolio on high-margin specialty chemicals and advanced materials businesses. This sale will further enhance our overall Adjusted EBITDA margins, improve our leverage ratio and help maximize shareholder value." Mexichem said the acquisition will bring important synergies to its chlorine-vinyl chain.

AlphaGary manufactures speciality plastic compounds for the wire and cable business as well as medical applications and other uses. The transaction is subject to customary closing conditions, including regulatory approval, and Rockwood expects the transaction to close during the first quarter of 2011.