CLEVELAND, Dec. 23 /PRNewswire-FirstCall/ -- PolyOne Corporation today announced it has acquired substantially all of the assets of specialty healthcare engineered materials provider New England Urethane, Inc. (NEU). The purchase price of $12 million includes an earn-out payable in 2011. Based in North Haven, Conn., NEU provides high performance engineered thermoplastics, services and solutions to the healthcare market.
"We're pleased to announce the acquisition of NEU, which expands PolyOne's healthcare product offerings. PolyOne will also add critical mass to a niche player in the healthcare field," said Craig Nikrant, vice president and general manager of Specialty Engineered Materials. "We look forward to leveraging our global reach and NEU's technology and industry knowledge to accelerate healthcare sales growth for PolyOne."
"This acquisition illustrates our commitment to investing in and growing our specialty platform, and more specifically our healthcare business, which we have said publicly is a focus market for PolyOne," said Robert M. Patterson, senior vice president and chief financial officer. "At a purchase price of approximately 4.9 times estimated 2009 EBITDA, we expect NEU will be accretive to earnings, adding a penny to earnings per share in 2010."
About PolyOne
PolyOne Corporation, with 2008 revenues of $2.7 billion, is a premier provider of specialized polymer materials, services and solutions. Headquartered outside of Cleveland, Ohio USA, PolyOne has operations around the world. For additional information on PolyOne, visit our Web site at http://www.polyone.com/.
To access PolyOne's news library online, please visit http://www.polyone.com/news About NEU
New England Urethane, founded in 1988, is a leading custom compounder serving manufacturers worldwide to meet customers' demands and specifications through technical expertise and manufacturing know-how. NEU is one of the preferred custom compounders of thermoplastics.
In addition, NEU also offers a wide array of services and capabilities, including: research and development; pre-coloring; alloys and blends; product development; materials selection consultation; technical support; melt refining homogenization processes; and the latest in single and twin screw capabilities.
Forward-looking Statements
In this press release, statements that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. They use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance and/or sales. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: the ability to successfully integrate New England Urethane, Inc. into the Company's operations; unexpected costs or liabilities that may arise from the acquisition of NEU; the ability to retain key personnel in connection with the acquisition of NEU; the impact of the results of operations of NEU on the Company's ability to achieve fully the strategic and financial objectives related to the transaction, including the acquisition being accretive to earnings; disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; the continued degradation in the North American residential construction market; the financial condition of our customers, including the ability of customers (especially those that may be highly leveraged and those with inadequate liquidity) to maintain their credit availability; the effect on foreign operations of currency fluctuations, tariffs, and other political, economic and regulatory risks; changes in polymer consumption growth rates in the markets where PolyOne conducts business; changes in global industry capacity or in the rate at which anticipated changes in industry capacity come online; fluctuations in raw material prices, quality and supply and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; an inability to achieve or delays in achieving or achievement of less than the anticipated financial benefit from initiatives related to working capital reductions, cost reductions and employee productivity goals; an inability to raise or sustain prices for products or services; an inability to maintain appropriate relations with unions and employees; and other factors affecting our business beyond our control, including, without limitation, changes in the general economy, changes in interest rates and changes in the rate of inflation. The above list of factors is not exhaustive.
We undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission.
PolyOne Corporation
CONTACT: Investor Relations: Joseph P. Kelley, Vice President, Planning
and Investor Relations, PolyOne Corporation, +1-440-930-3502,
joseph.kelley@polyone.com; Media: Amanda Marko, Director, Corporate
Communications, PolyOne Corporation, +1-440-930-3162,
amanda.marko@polyone.com
Web Site: http://www.polyone.com/
