The two companies also entered into a supply agreement, whereby Kraton will provide PolyOne certain raw materials used in production for the acquired business.
The end markets utilizing the acquired technologies span new and fast growing applications in adhesive and removable protective films, as well as existing applications served by PolyOne, such as packaging, medical devices and personal care products. The purchase price of $72 million represents a multiple of 9x EBITDA.
"Since our highly successful TPE acquisition of GLS in 2008, we've continually invested in, globalized and grown in TPE innovation and its broad value-added uses," said Robert M. Patterson, president and chief executive officer, PolyOne Corporation. "We are very pleased to have made this investment for our customers and their product design, development and performance goals."
"I view this transaction as a win for both companies, and most importantly, for our respective shareholders and customers," said Kevin M. Fogarty, president and chief executive officer of Kraton. "It allows PolyOne and Kraton to focus on our core competencies and help our customers with new and unique solutions that differentiate them in the marketplace."
Mr. Patterson added, "The integration will be swift and seamless, as we leverage our existing TPE know-how, global reach, and commercial expertise to help our customers in new and innovative ways."