 "Mexichem to buy HDPE pipe maker Dura-Line for $630 mn")
Mexichem SAB de CV has signed an agreement to acquire Dura-Line Corporation from CHS Capital for a total of $630 million in cash and assumed liabilities, advancing Mexichem’s strategy of global growth in high-end specialty products. Based in Tennessee (USA), Dura-Line is a global leader in high-density polyethylene (HDPE) conduit, duct and pressure pipe solutions for telecom and data communications, energy and infrastructure industries. Dura-Line has manufacturing facilities in North America, India, Oman, Europe, and South Africa. The company has three factories in India - two in Goa and one in Neemrana, near Delhi.
Paresh Chari, CEO of Dura-Line, said, “We are pleased to become part of Mexichem’s global team. Joining an organisation with Mexichem’s scale will provide strong support for our existing operations and brands, and will enhance the future growth of the business.”
“The acquisition of Dura-Line will be a further step in our strategy of becoming a global, vertically integrated chemical company with a focus on high-end specialised products and solutions,” said Antonio Carrillo, CEO of Mexichem.
He added, “Dura-Line’s technological expertise and leading market position in telecom, data communications and energy piping, including its portfolio of blue-chip customers, will allow us to expand in these fast-growing segments across our global operations. Dura-Line’s international footprint will allow our Integral Solutions business to increase penetration in key markets, and will also provide a platform for growth in new geographies for all of Mexichem’s products.”
The transaction is subject to regulatory approvals and is expected to close by the end of the third quarter of 2014. Once the transaction has closed, Mexichem will consolidate Dura-Line under the company’s Integral Solutions chain for accounting purposes. Dura-Line will continue to operate under its current management and with its existing brand portfolio.
Paresh Chari, CEO of Dura-Line, said, “We are pleased to become part of Mexichem’s global team. Joining an organisation with Mexichem’s scale will provide strong support for our existing operations and brands, and will enhance the future growth of the business.”
“The acquisition of Dura-Line will be a further step in our strategy of becoming a global, vertically integrated chemical company with a focus on high-end specialised products and solutions,” said Antonio Carrillo, CEO of Mexichem.
He added, “Dura-Line’s technological expertise and leading market position in telecom, data communications and energy piping, including its portfolio of blue-chip customers, will allow us to expand in these fast-growing segments across our global operations. Dura-Line’s international footprint will allow our Integral Solutions business to increase penetration in key markets, and will also provide a platform for growth in new geographies for all of Mexichem’s products.”
The transaction is subject to regulatory approvals and is expected to close by the end of the third quarter of 2014. Once the transaction has closed, Mexichem will consolidate Dura-Line under the company’s Integral Solutions chain for accounting purposes. Dura-Line will continue to operate under its current management and with its existing brand portfolio.