Mexichem, S.A.B. de C.V. has taken over Sylvin Technologies Inc., a niche PVC compounds manufacturer based in Denver, Pennsylvania for an Enterprise Value of $39 million based on a debt free cash free valuation. With a history of 30-years serving a wide range of industries spanning wire and cable, electrical, industrial, automotive, medical and food products, Sylvin will operate under the Mexichem’s Vinyl Business Group as part of its Compounds Business Unit. The Vinyl Business Group is a leading supplier of PVC compound solutions with sales revenue of $2.2 billion for the twelve months period ending September 30, 2017.
With the takeover of Sylvin and using its customer-focused business model, strong team and capabilities in application development, Mexichem has planned to provide even greater value to its combined U.S. customers. PVC resin, plasticizers, and stabilizers, the raw materials used by Sylvin along with the Mexichem’s Vinyl operations are expected to yield good results.
Sameer S. Bharadwaj, President of the Compounds Business Unit, said, “This transaction continues Mexichem’s strategy of completing bolt-on acquisitions that expand its portfolio of specialty products and applications and give access to new end markets and customers, driving future growth. These products and applications can be further leveraged globally as we expand in other parts of the world.”
Responding to the observations of Sameer Bharadwaj, Antonio Carrillo, CEO of Mexichem, remarked, “The acquisition of Sylvin is a further step towards downstream integration in specialty products with higher margins that enables sustainable growth of our return on invested capital over our weighted average cost of capital in the long run.”