PolyOne Acquisition of Spartech Approved By Shareholders
PolyOne Corporation (NYSE: POL), a premier provider of specialized polymer materials, services, and solutions, today announced that Spartech shareholders have approved the merger agreement pursuant to which PolyOne will acquire Spartech Corporation (NYSE: SEH), a leading producer of custom plastic sheet and rollstock and packaging solutions. PolyOne announced the agreement to acquire Spartech Corporation on October 24, 2012. The transaction will be officially completed on March 13, 2013.
"We are thrilled to be moving forward with this acquisition, and we welcome the Spartech associates to the PolyOne team," said Stephen D. Newlin, chairman, president and chief executive officer, PolyOne Corporation. "This acquisition further strengthens our Specialty Platform by enabling us to better serve customers with adjacent technologies in attractive end markets."
"This business looks very much like PolyOne did in the early years of our transformation. We have the playbook and in-house expertise to accelerate Spartech's transformation from a volume-oriented company to one that focuses on specialty solutions and true value creation for customers," added Mr. Newlin. "We are committed to the successful integration of Spartech, and look forward to delivering the projected annual synergies of $65 million by the end of the third year post-acquisition."
With the acquisition of Spartech, PolyOne will make changes to its segment structure. PolyOne's Specialty Platform will now have three reportable segments: Global Color, Additives and Inks, Global Specialty Engineered Materials, and a newly formed segment named Designed Structures and Solutions (DSS). DSS will be comprised of Spartech's former Custom Sheet and Rollstock and Packaging Technologies businesses. Spartech's Color & Specialty Compounds business will be integrated into PolyOne's Global Color, Additives & Inks, Global Specialty Engineered Materials, and Performance Products & Solutions segments. Use of the Spartech name will discontinue.
PolyOne also announced that it has appointed Julie A. McAlindon as senior vice president, president of Designed Structures and Solutions, reporting to Robert M. Patterson, executive vice president and chief operating officer. Ms. McAlindon joined PolyOne in June 2010 as vice president, marketing after a distinguished career with The Dow Chemical Company. Ms. McAlindon has been an integral part of the specialty transformational journey at PolyOne, leading the marketing function through process improvements in innovation, commercialization of market-driven applications and identification and analysis of megatrends that drive strategic planning.
"I am extremely pleased that Julie will be leading this important business segment within PolyOne, and that it will continue to be based in the St. Louis area. She has the drive, experience, technical skills and leadership qualities needed to fully maximize the value we expect from this new business," Mr. Patterson said.
In addition, Vicki Holt, president and CEO of Spartech Corporation, has announced she will be leaving the company, following a 30-day transition period to help launch the commencement of integration efforts. "I'd like to thank Vicki for her insights, leadership and professionalism throughout this process, and I wish her the very best in the next chapter of her career," Mr. Newlin said.
About PolyOne PolyOne Corporation, with 2012 revenues of $3.0 billion, is a premier provider of specialized polymer materials, services and solutions. The company is dedicated to serving customers in diverse industries around the globe, by creating value through collaboration, innovation and an unwavering commitment to excellence. Guided by its Core Values, Sustainability Promise and No Surprises PledgeSM, PolyOne is committed to its customers, employees, communities and shareholders through ethical, sustainable and fiscally responsible principles. For more information, visit www.polyone.com.
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