PolyOne Corporation POL recently declared that it has purchased specific technologies and assets from Kraton Performance Polymers, Inc. KRA for $72 million in cash. Both companies also inked a supply agreement per which Kraton will supply PolyOne with some raw materials needed in production for the acquired business.
According to Robert M. Patterson, president and chief executive officer, PolyOne, the company has expanded in thermoplastic elastomer (“TPE”) innovation globally following the TPE acquisition of GLS in 2008. Hence, it is optimistic about this investment as well as new and fast growing applications in adhesive and removable protective films.
Also, PolyOne recently reported its fourth-quarter 2015 results. The company’s adjusted earnings increased 8% to 39 cents in the quarter from 36 cents in the prior-year quarter. However, the company witnessed a 10.7% plunge in revenues to $776 million in fourth-quarter 2015 from $869 million in the year-ago quarter, partly due to unfavourable currency translation.
PolyOne noted that it started 2016 with the acquisition of Kraton's TPE business which is expected to strengthen its expertise in TPE formulation and drive growth in the consumer and healthcare markets.
Shares of PolyOne fell around 3% to close at $24.97 on Feb 3.
PolyOne currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the chemical space include Koninklijke DSM N.V. RDSMY and Daqo New Energy Corp. DQ, both sporting a Zacks Rank #1 (Strong Buy).
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