PolyOne to Sell Engineered Films Unit
PolyOne Corporation has signed a letter of intent to sell its Engineered Films business unit to an investor group comprising members of the unit's management team along with an investor group formed by Matrix Capital Markets. Matrix Capital is an investment banking firm that has been retained to advise management and arrange financing for the transaction. The new entity, yet to be named, will consist of the operating assets and liabilities of the Engineered Films unit.
Terms of the agreement were not disclosed. PolyOne will retain a minority ownership interest in the new entity. The sale is subject to the approval of the PolyOne Board of Directors, completion of the required transaction financing, finalization of definitive agreements and completion of due diligence. The transaction is expected to close in the fourth quarter of 2005, subject to the foregoing conditions and other customary closing conditions.
PolyOne announced in late 2003 that it would confine its strategic emphasis to its Plastics Compounding, Color and Additives Masterbatch, and Distribution businesses. These businesses have leading market positions, and most are global in scope. In line with this strategy, PolyOne also announced that it would divest its Elastomers and Performance Additives, Engineered Films and Specialty Resins businesses. As a result, the Company began reporting these business units as discontinued operations in the fourth quarter of 2003. PolyOne sold its Elastomers business in August 2004.
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