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12-01-2016

Mexichem Acquires U.K.-Based Vinyl Compounds

Mexichem announced that it has acquired Vinyl Compounds Holdings Ltd. (VCHL), a U.K.-based technical PVC compounds manufacturer serving a broad range of industries including: building and construction, pipe and profile manufacturers, footwear and consumer goods. Based in Derbyshire, VCHL has annualized revenues of approximately USD 40 million.

Mexichem will consolidate VCHL under its Compounds Business Unit, a leading supplier of PVC compound solutions serving the global market and part of the company’s Vinyl Business Group, which reported sales of USD 2 billion for the trailing twelve months ended September 30, 2016. The addition of VCHL will expand Mexichem’s ability to meet global PVC compound demand and will enable further vertical integration of its Compounds Business Unit operations through VCHL’s stabilizer technologies and recycled PVC capabilities. VCHL’s key raw materials are PVC resin and plasticizers, which should bring additional synergies to Mexichem’s Vinyl operations.

"This transaction is aligned with Mexichem’s strategy of completing bolt-on acquisitions that provide us with access to new geographies and end markets, expand our portfolio of specialty products and serve as a platform for future growth, while enhancing returns on invested capital,” said Sameer S. Bharadwaj, President of the Compounds Business Unit.

Company profile

Mexichem

Río San Javier No. 10
MX TLALNEPANTLA C.P. 54060

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