PolyOne Corporation announced the acquisition of Magenta Master Fibers (Magenta), an innovative developer of specialty solid color concentrates for the global fiber industry. PolyOne purchased Magenta from BASF for $22 million, which represents a multiple of 6.8x EBITDA. The acquisition is expected to add $16 million to revenues and be accretive to earnings in 2016.
Magenta's solutions span a wide range of uses, including clothing and apparel, outdoor equipment, high-performance products and multiple materials used in the transportation industry. And consistent with the megatrend of improving health and wellness, additional textile growth opportunities include applications within the hygiene, healthcare and medical markets.
With operations in Milan and Shanghai, 65 percent of Magenta revenues are outside of North America. Magenta will operate within PolyOne's Global Color, Additives and Inks segment, which last month unveiled its revolutionary new ColorMatrix Fiber Colorant Solutions that provide late-stage color injection in fiber applications utilizing liquid solutions.
"PolyOne's unique, customer-first approach to color and additive solutions begins with an unbiased perspective as to the technology. By offering both liquid and solid masterbatch solutions, we better ensure that the chosen technology is the best one for each customer's specific needs," explained John V. Van Hulle, president, Global Color, Additives and Inks, PolyOne Corporation. "With our acquisition of Magenta, we're very pleased to be building this same, deep breadth of specialty solid and liquid colorant solutions for fiber applications."
"This is another excellent, strategic acquisition that will further accelerate our specialty strategy as we pursue our 2020 Platinum Vision," said Robert M. Patterson, president and chief executive officer, PolyOne Corporation. "Similar to our past Color business acquisitions of ColorMatrix and Accella, we will utilize our invest-to-grow integration approach to help our customers innovate and succeed."
