PolyOne acquiring plastic sheet, compound producer Spartech for US$393M; purchase expands PolyOne's specialty portfolio, adjacent technologies in end markets with Spartech's leading North American market position in sheet, rigid barrier packaging

CLEVELAND , October 24, 2012 (press release) – Acquisition Highlights:  

  • Spartech expands PolyOne's specialty portfolio with adjacent technologies in attractive end markets
    • Leading North America market positions in sheet, rigid barrier packaging and specialty cast acrylic technologies
    • Focused areas of growth in aerospace, security, packaging and healthcare
  • Significant opportunity to expand profitability by leveraging PolyOne's four-pillar strategy
    • Bolt-on acquisition with opportunity for global expansion
    • Align capacity and cost structure with the voice of the customer
    • Mix shift away from volume toward value
    • Cross selling to enhance market penetration
  • Preliminary annualized synergies estimated at $65 million
    • Expected to be accretive to EPS in first full year post-acquisition
    • Annual EPS expected to expand by $0.50 per share upon full synergy capture
  • PolyOne has a proven management team with a track record of success
    • Spartech looks much like PolyOne did in the early years of transformation
    • Substantial share price appreciation potential for all shareholders
  • Spartech stockholders to receive cash and stock valued at $8.00 per Spartech common share

PolyOne Corporation (NYSE: POL), a premier provider of specialized polymer materials, services and solutions, and Spartech (NYSE: SEH), a leading producer of plastic sheet, compounds and packaging solutions, today announced they have entered into a definitive agreement, under which PolyOne will acquire Spartech.  Under the terms of the agreement, Spartech stockholders will receive $2.67 in cash and 0.3167 shares of PolyOne common stock for each share of Spartech common stock. Based on the closing price of PolyOne shares on Tuesday, October 23, Spartech stockholders will receive cash and stock valued at $8.00 per Spartech common share, representing a total transaction value of approximately $393 million, including the assumption of Spartech's net debt of $142 million.

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