Petrochemicals and plastics piping specialist Mexichem (Tlalnepantla / Mexico; www.mexichem.com) has acquired Sylvin Technologies (Denver, Pennsylvania / USA; www.sylvin.com), a niche PVC compounder, for a debt-free enterprise value of USD 39m. The US compounder, which expected sales of USD 29m in 2017, supplies a broad range of industries including wire and cable, electrical, industrial, automotive, medical and food products. Mexichem will consolidate Sylvin under its Vinyl Business Group as part of its Compounds Business Unit. The Vinyl Business Group reported sales of USD 2.2 bn for fiscal 2017, which ended on 30 September 2017.

The Mexican company said combining the new acquisition’s customer-focused business model, strong team and application development capabilities with its own global compounds business will allow it to deliver greater value to its combined US customers. Sylvin’s key raw materials of PVC resin, plasticisers and stabilisers should bring synergies to Mexichem’s vinyl operations, it added. Sameer S. Bharadwaj, president of the Compounds Business Unit, said the latest buy continues the company’s strategy of completing bolt-on acquisitions that expand its portfolio of speciality products and applications and give access to new end markets and customers.

Meanwhile, following all regulatory approvals, Mexichem has now completed the acquisition of an 80% stake in Netafim (Tel Aviv / Israel; www.netafim.com) from private equity group Permira Kibbutz Hatzerim. The kibbutz will retain a 20% stake, and the company’s headquarters will remain in Israel. The USD 1.5 bn deal was announced last year – see Plasteurope.com of 11.08.2017. Netafim is regarded as a global leader in smart drip and micro-irrigation solutions, which among other things employ PE piping, one of Mexichem’s specialities.

Board chairman Juan Pablo del Valle said the acquisition of the Israeli firm, which has 29 subsidiaries, 17 manufacturing plants and 4,500 employees worldwide, will enable Mexichem to develop a strategic presence in the dynamic field of micro irrigation, a sector that is effectively addressing challenges related to global food and water shortages. Daniel Martínez-Valle, who became Mexichem’s new CEO on 7 February 2018, added that “Netafim brings the R&D and technology to transform existing products in our portfolio into smart solutions that can assist our customers in managing their networks and operating sites.”