PolyOne sells Melos granulates business to MBO team

By Patrick Raleigh, ERJ On-line news editor

Cleveland, Ohio-PolyOne Corp. has sold its Melos rubber granulate production operation in Melle, Germany, to the Melos management team, PolyOne announced 9 June.

The Melos unit, which produces EPDM granulate for surfacing running tracks, sports fields, playgrounds and safety flooring, had 2003 sales of $35 million. The deal does not include wire & cable compound manufacturing operations at the Melle site. PolyOne said this unit remains an “investment focus” for the company.

PolyOne forerunner MA Hanna Co. gained the ruubber granulates business in 1998 through its acquisition of Melos Carl Bosch GmbH + Co. The deal marked Hanna's entry into the European rubber compounding market.

PolyOne did not issue terms of MBO deal, but has posted charges of around $8 million in the second quarter of 2004 for the transaction. The management team was supported by investors from a group of European banks and funds, the Cleveland-based firm also noted.

“We have enjoyed our short partnership with the Melos team, but now we can focus all of our attention on our core plastic compounding and colour additives businesses,” said Bernard Baert, vice president and general manager of PolyOne's International Compounds and Colors unit.