It increasingly seems as though not one day passes without news of yet another development in the European PVC market. After the recent announcement that Westlake is buying Vinnolit (see Plasteurope.com of 28.05.2014) and Ineos and Doeflex’s plans to merge their PVC compounding businesses (see Plasteurope.com of 23.05.2014), Belgium’s Solvay (Brussels; www.solvay.com) on 4 June said it had completed the divestment of its PVC compounding subsidiary Benvic (Jemeppe / Belgium) to OpenGate Capital (Los Angeles, California / USA; www.opengatecapital.com). Financial details were not disclosed, although Solvay did say Benvic posted revenues of EUR 160m last year, adding that the takeover would not affect its workforce of 220.

The divestment was first announced at the end of last year (see Plasteurope.com of 20.12.2013) and has now received the official go-ahead from the competition authorities. Benvic operates three compounding plants with a combined capacity of 143,000 t/y at three European locations, including 70,000 t/y at Chevigny Saint-Sauveurs / France, 38,000 t/y at Ferrara / Italy and 35,000 t/y at Montornés del Vallés / Spain. It manufactures PVC-based thermoplastic powders and compounds for the building, automotive, cable, pharmaceuticals and packaging sectors, among others.

The acquisition is the third PVC purchase on the part of OpenGate Capital. The US investor in January last year completed the purchase of Tessenderlo’s (Brussels / Belgium; www.tessenderlo.com) profiles subsidiary Profialis (see Plasteurope.com of 03.09.2012) and early this year wrapped up its takeover of Kem One (Lyon / France; www.kemone.com) – see Plasteurope.com of 03.01.2014. OpenGate said that the combined revenues of all three businesses exceed USD 1.5 bn.

The US investor added that under its leadership, Benvic “will benefit from one ownership structure”, including improved buying leverage and supplier agreements. Commenting on the acquisition, OpenGate CEO Andrew Nikou said, “Not only is Benvic an exciting business on its own merits with terrific upside potential, but combined with our other PVC holdings, the acquisition also fulfils our strategy to develop our presence in the global PVC industry.”