Axiall Divests of PVC-Related Business Units
Axiall Corporation, Atlanta, GA/USA, an integrated chemicals and building products company, is going to sell two PVC-related business units. The company has signed an agreement to sell certain assets of its compound additives business, known as Solucor, and its manufacturing facility located in Bradford, Ontario, to Galata Chemicals of Southbury, CT/USA. In a second transaction, Axiall has signed a definitive agreement to sell its window and door profiles business, a component of Royal Building Products, to OpenGate Capital. The transaction is subject to regulatory approval and customary closing conditions. The sale is expected to close on March 31, 2016.
The Bradford facility, which includes approximately 60 employees who will transfer with the sale to Galata, manufactures high-quality additives for rigid PVC applications, focusing on a broad mix of process aids and impact modifiers, among other products.
The Axiall compounding facility located in Concord, Ontario, is included in the window and door profiles transaction. It is a primary supplier to the window and door profiles business. As a North American market leader in innovation of vinyl profiles extrusion, the business provides quality custom profiles systems and platform products to meet the needs of window manufacturers across North America. The business works closely with customers to design products that meet the needs of their markets.
“As we refine our portfolio, we are pleased to have reached an agreement to sell our Solucor business to Galata Chemicals,” said Axiall President and CEO Tim Mann. “This are our third and fourth divestiture of non-core assets since April 2015, which allows us to better focus on our core chloro-vinyls and derivatives businesses. In particular, selling the window and door profiles business leaves Royal Building Products with the solid core product lines that generate better EBITDA margins, namely our siding, trim, molding, fittings and pipe businesses.”
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