PolyOne to sell its PP&S business for $775 million

PolyOne Corporation announced that it will sell its Performance Products and Solutions business (PP&S) to SK Capital Partners in a cash transaction of $775 milli.

PolyOne expects pretax earnings of approximately $600 million when the transaction clos.

PolyOne's PP&S segment, with sales of $700 million, provides formulated PVC and polypropylene solutions and customized services, primarily serving the construction and automotive end markets in North Ameri.

"We led a very competitive bidding process for the PP&S business unit," said Robert.

"In the short term, this transaction will be used to repay debt on our revolving credit facility, reduce our total net debt by the end of 2019, and reduce EBITDA leverage from 2 to " Patterson sa.

In the long run, he said, the deal would be more beneficial for PolyOne to focus on three business segments -- specialty engineered materials; pigments, additives and inks, and distributi.

PolyOne reiterated its full-year 2019 adjusted revenue target of 6%-8% YoY growth per sha.