Avon Lake, Ohio – PolyOne Corp has acquired "certain assets" of Kraton Performance Polymers's compounding business for $72 million (€65 million) in cash, the companies announced 3 Feb.
The deal covers assets and technologies relating to thermoplastic elastomers (TPEs), Avon Lake-based PolyOne said in a news release:
The companies have also have entered into a long-term supply agreement, giving Kraton exclusive supply rights for polymers used in the divested business.
PolyOne officials said the deal would enable it to further expand its TPE business: Kraton’s TPE products are based on styrenic block copolymers
End markets served by the acquired business include adhesive and removable protective films, as well as packaging, medical devices and personal care products.
Kraton said that taking into consideration projected sales under the supply agreement, selling the compounding business would have a net impact on its total sales of less than $25 million.
Since PolyOne's acquisition of the GLS TPE business in 2008, it has "continually invested in, globalised and grown in TPE innovation and its broad value-added uses," said Robert Patterson, president and CEO. "We are very pleased to have made this investment for our customers and their product design, development and performance goals."
Patterson added that the integration of the Kraton TPE compounding business would be "swift and seamless."
For Kraton, Kevin Fogarty, president and CEO, said the deal would allow "PolyOne and Kraton to focus on our core competencies and help our customers with new and unique solutions that differentiate them in the marketplace."