Mergers & Acquisitions

March 19, 2020

Mearthane Makes Another Acquisition

Mearthane Products Corporation Acquires Polyurethane Molding Industries, Inc.

Mearthane Products Corporation Acquires Polyurethane Molding Industries, Inc.

Feb 26, 2020

FOR IMMEDIATE RELEASE

CRANSTON, R.I., February 26, 2020 – Mearthane Products Corporation announced today that it has completed the acquisition of Polyurethane Molding Industries, Inc. (PMI), a provider of Reaction Injection Molding (RIM) and custom part finishing services based in Woonsocket, Rhode Island. The purchase of PMI follows the company’s acquisition of Creative Urethanes Inc., of Winchester, Virginia, in October 2018 and marks MPC’s fifth acquisition in 3 years.

PMI’s expertise in polyurethane Reaction Injection Molding (RIM) and custom part finishing has made it a key supplier to a variety of product designers specialized in medical devices, banking, and electronics. “PMI’s RIM business will expand our existing RIM capabilities to include rigid materials for cabinets, housings and other structural parts, including excellent precision painting and finishing processes,” said Pete Kaczmarek, President of MPC. “Furthermore, PMI brings a new customer base to whom we can now offer a wider range of customized polyurethane solutions.”

With the completion of this acquisition, Len Strapponi, President of PMI, will join the MPC team as Director of Business & Process Development for RIM. Mr. Strapponi has over twenty-five years of experience in the engineering, design, and manufacturing of RIM products. “We are delighted to be part of MPC’s team and look forward to the opportunities this new venture brings to grow our RIM and painting services”. In addition to this transition, Brian Johnson, a long-term PMI leader, will become Operations Manager of PMI’s Woonsocket, R.I. location.

About Mearthane Products Corporation (MPC)

Mearthane Products Corporation (MPC) is a global technology leader in the development and manufacture of advanced polyurethane and metal components. Building on over 50 years of formulation and processing experience, MPC partners closely with customers to develop innovative solutions to their toughest challenges in fitness & recreation, military & defense, food processing, office automation, and a wide variety of industrial and consumer applications worldwide. MPC’s products are made in the USA and shipped all over the world, leading to its award in 2017 as the Exporter of the Year for Rhode Island by the US Small Business Administration. MPC is proud to be a Veteran Owned Small Business (VOSB) and certified to ISO-9001:2015.
For more information, please visit: www.mearthane.com

About Polyurethane Molding Industries (PMI)

Polyurethane Molding Industries (PMI) Inc., is a full-service manufacturing facility of custom molded polyurethane elastomers, in-house mold design and finishes. Since 1979, PMI has been employing its Reaction Injection Molding (RIM) capabilities to manufacture large, complex products and components for diverse applications, including medical device and analytical testing device enclosures. PMI specializes in designing and manufacturing parts with excellent finish surface quality for critical high-end applications.
For more information, please visit: www.pmirim.com
https://www.mearthane.com/news/

March 19, 2020

Mearthane Makes Another Acquisition

Mearthane Products Corporation Acquires Polyurethane Molding Industries, Inc.

Mearthane Products Corporation Acquires Polyurethane Molding Industries, Inc.

Feb 26, 2020

FOR IMMEDIATE RELEASE

CRANSTON, R.I., February 26, 2020 – Mearthane Products Corporation announced today that it has completed the acquisition of Polyurethane Molding Industries, Inc. (PMI), a provider of Reaction Injection Molding (RIM) and custom part finishing services based in Woonsocket, Rhode Island. The purchase of PMI follows the company’s acquisition of Creative Urethanes Inc., of Winchester, Virginia, in October 2018 and marks MPC’s fifth acquisition in 3 years.

PMI’s expertise in polyurethane Reaction Injection Molding (RIM) and custom part finishing has made it a key supplier to a variety of product designers specialized in medical devices, banking, and electronics. “PMI’s RIM business will expand our existing RIM capabilities to include rigid materials for cabinets, housings and other structural parts, including excellent precision painting and finishing processes,” said Pete Kaczmarek, President of MPC. “Furthermore, PMI brings a new customer base to whom we can now offer a wider range of customized polyurethane solutions.”

With the completion of this acquisition, Len Strapponi, President of PMI, will join the MPC team as Director of Business & Process Development for RIM. Mr. Strapponi has over twenty-five years of experience in the engineering, design, and manufacturing of RIM products. “We are delighted to be part of MPC’s team and look forward to the opportunities this new venture brings to grow our RIM and painting services”. In addition to this transition, Brian Johnson, a long-term PMI leader, will become Operations Manager of PMI’s Woonsocket, R.I. location.

About Mearthane Products Corporation (MPC)

Mearthane Products Corporation (MPC) is a global technology leader in the development and manufacture of advanced polyurethane and metal components. Building on over 50 years of formulation and processing experience, MPC partners closely with customers to develop innovative solutions to their toughest challenges in fitness & recreation, military & defense, food processing, office automation, and a wide variety of industrial and consumer applications worldwide. MPC’s products are made in the USA and shipped all over the world, leading to its award in 2017 as the Exporter of the Year for Rhode Island by the US Small Business Administration. MPC is proud to be a Veteran Owned Small Business (VOSB) and certified to ISO-9001:2015.
For more information, please visit: www.mearthane.com

About Polyurethane Molding Industries (PMI)

Polyurethane Molding Industries (PMI) Inc., is a full-service manufacturing facility of custom molded polyurethane elastomers, in-house mold design and finishes. Since 1979, PMI has been employing its Reaction Injection Molding (RIM) capabilities to manufacture large, complex products and components for diverse applications, including medical device and analytical testing device enclosures. PMI specializes in designing and manufacturing parts with excellent finish surface quality for critical high-end applications.
For more information, please visit: www.pmirim.com
https://www.mearthane.com/news/

March 16, 2020

Huntsman Buys CVC

Huntsman Announces the Acquisition of CVC Thermoset Specialties, Expanding its Specialty Chemicals Portfolio

|PR Newswire|About: HUN

THE WOODLANDS, Texas, March 16, 2020 /PRNewswire/ — Huntsman Corporation (HUN) today announces its agreement to acquire CVC Thermoset Specialties, a North American specialty chemical manufacturer serving the industrial composites, adhesives and coatings markets.  CVC Thermoset Specialties is part of Emerald Performance Materials LLC which is majority owned by affiliates of American Securities LLC.

CVC Thermoset Specialties has annual revenues of approximately $115 million with two manufacturing facilities located in Akron, Ohio, and Maple Shade, New Jersey.  Under terms of the agreement, Huntsman will pay $300 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity.  Based on full year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 10 times, or between approximately 7 to 8 times pro forma for synergies, the lower multiple end being dependent upon normal growth market conditions.  The transaction is expected to close around midyear of 2020.

Commenting on the acquisition, Scott Wright, President of Huntsman’s Advanced Materials division, said:  “The acquisition of CVC Thermoset Specialties brings valuable complementary technology breadth to our Advanced Materials portfolio and its unique products will make systems using our class-leading epoxy-based materials even tougher, stronger, and more durable.  This business manufactures highly specialized toughening, curing and other additives used in a wide range of composite, adhesive and coatings applications across aerospace, automotive and industrial markets.  In addition to strengthening our position in North America, Huntsman will use our existing asset footprint and routes to market in Europe and Asia to rapidly grow and globalize CVC Thermoset Specialties’ exciting and complementary product range.  This acquisition will further improve our ability to create differentiation in our customers’ applications, in particular through our strong formulations business.”

Peter Huntsman, Chairman, President and CEO, further commented:  “This bolt-on fits all the criteria we look for in acquisitions for our Advanced Materials division, including new technology, synergies, and globalization opportunities. The business currently achieves EBITDA margins in excess of 25% and we expect to achieve significant synergies within two years.

“In these uncertain times, our financial strength will allow us to keep looking for these types of acquisitions, while at the same time maintain a conservative balance sheet and opportunistically repurchase shares.  We remain committed to our balanced approach to capital allocation.  Year-to-date we have taken advantage of our depressed stock price and have repurchased approximately $85 million in stock.  Lastly, while forward visibility remains low, the first quarter is on track to deliver on the outlook that we communicated on our February 13, 2020 earnings call.”

https://seekingalpha.com/pr/17809535-huntsman-announces-acquisition-of-cvc-thermoset-specialties-expanding-specialty-chemicals

March 16, 2020

Huntsman Buys CVC

Huntsman Announces the Acquisition of CVC Thermoset Specialties, Expanding its Specialty Chemicals Portfolio

|PR Newswire|About: HUN

THE WOODLANDS, Texas, March 16, 2020 /PRNewswire/ — Huntsman Corporation (HUN) today announces its agreement to acquire CVC Thermoset Specialties, a North American specialty chemical manufacturer serving the industrial composites, adhesives and coatings markets.  CVC Thermoset Specialties is part of Emerald Performance Materials LLC which is majority owned by affiliates of American Securities LLC.

CVC Thermoset Specialties has annual revenues of approximately $115 million with two manufacturing facilities located in Akron, Ohio, and Maple Shade, New Jersey.  Under terms of the agreement, Huntsman will pay $300 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity.  Based on full year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 10 times, or between approximately 7 to 8 times pro forma for synergies, the lower multiple end being dependent upon normal growth market conditions.  The transaction is expected to close around midyear of 2020.

Commenting on the acquisition, Scott Wright, President of Huntsman’s Advanced Materials division, said:  “The acquisition of CVC Thermoset Specialties brings valuable complementary technology breadth to our Advanced Materials portfolio and its unique products will make systems using our class-leading epoxy-based materials even tougher, stronger, and more durable.  This business manufactures highly specialized toughening, curing and other additives used in a wide range of composite, adhesive and coatings applications across aerospace, automotive and industrial markets.  In addition to strengthening our position in North America, Huntsman will use our existing asset footprint and routes to market in Europe and Asia to rapidly grow and globalize CVC Thermoset Specialties’ exciting and complementary product range.  This acquisition will further improve our ability to create differentiation in our customers’ applications, in particular through our strong formulations business.”

Peter Huntsman, Chairman, President and CEO, further commented:  “This bolt-on fits all the criteria we look for in acquisitions for our Advanced Materials division, including new technology, synergies, and globalization opportunities. The business currently achieves EBITDA margins in excess of 25% and we expect to achieve significant synergies within two years.

“In these uncertain times, our financial strength will allow us to keep looking for these types of acquisitions, while at the same time maintain a conservative balance sheet and opportunistically repurchase shares.  We remain committed to our balanced approach to capital allocation.  Year-to-date we have taken advantage of our depressed stock price and have repurchased approximately $85 million in stock.  Lastly, while forward visibility remains low, the first quarter is on track to deliver on the outlook that we communicated on our February 13, 2020 earnings call.”

https://seekingalpha.com/pr/17809535-huntsman-announces-acquisition-of-cvc-thermoset-specialties-expanding-specialty-chemicals

March 4, 2020

Wanhua Sets Up JV

Wanhua Chemical Gains After Unveiling Fujian Polyurethane Raw Material JV

Tang Shihua
/SOURCE : yicai
Wanhua Chemical Gains After Unveiling Fujian Polyurethane Raw Material JV

(Yicai Global) March 4 — Wanhua Chemical Group’s shares rose after the company said it will form a joint venture with a petrochemicals maker under the Fujian government to build a polyurethane raw material plant in the Chinese province.

Wanhua Chemical’s stock [SHA:600309] climbed as much as 2.4 percent in Shanghai before ending the day 1.2 percent higher at CNY49.90 (USD7.19).

The chemicals giant will contribute CNY2.4 billion (USD344.7 million) in cash, 80 percent of the total investment, to the project with Fujian Petrochemical Group, the Shandong province-based company said in a statement late yesterday. The new plant will turn out 400,000 tons of methylenediphenyl diisocyanate and 400,000 tons of polyvinyl chloride a year.

MDI is one of the main raw materials used in the production of polyurethane. Wanhua Chemical’s market share exceeds 20 percent of total global demand of about 7 million tons, public records show.

The JV will acquire a 64 percent stake in the MDI project firm Fujian Cornell Polyurethane for free, and the stake of Cornell Polyurethane’s original actual controller will drop to 16 percent.

Chematur Technologies

Cornell Polyurethane’s former major shareholder sold its MDI assets to Wanhua Chemical for CNY925 million (USD132.9 million) last July, including all of its stake in well-known MDI production technology services provider Chematur Technologies, and pledged to transfer the Fujian MDI project’s development rights to Wanhua Chemical.

Founded in 2017, Cornell Polyurethane planned to build an MDI project with an annual capacity of 800,000 tons for CNY12.6 billion. The first phase, with a total investment of CNY6.6 billion and an annual capacity of 400,000 tons, was scheduled to go into operation in October, but construction work has made no progress since the project secured government approval.

As part of the deal to build the JV, Wanhua Chemical agreed that Fujian Petrochemical adds the toluene diisocynate and PVC production equipment of its subsidiary Fujian Southeast Electrochemical into the JV in exchange for a 20 percent stake. TDI is another important raw material for polyurethane production.

The JV will launch MDI production lines, expand the annual TDI capacity to 250,000 tons and build a PVC plant with an annual capacity of 400,000 tons. In addition, Wanhua Chemical will take a 49 percent stake in Southeast Electrochemical to boost its caustic soda output.

Southeast Electric, which specializes in chlorine and alkali chemical production and auxiliary thermoelectric supply, will provide raw materials and supporting utilities for the MDI and TDI projects, the statement said, without revealing the investment amount for the projects.

Editor: Peter Thomas

https://www.yicaiglobal.com/news/wanhua-chemical-gains-after-unveiling-fujian-polyurethane-raw-material-jv