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 â€œinvestment focusâ€ 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.
â€œWe 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,â€ said Bernard Baert, vice president and general manager of PolyOne's International Compounds and Colors unit.