PolyOne Corporation POL recently announced that it has acquired Magenta Master Fibers (Magenta), from BASF for $22 million. The buyout is expected to add $16 million to the company’s revenues and be accretive to its earnings in 2016.
The acquisition expands PolyOne's portfolio of colorant solutions and additives technologies for fiber applications. Also, it extends the company’s presence into strategic end markets such as transportation and consumer goods. This will also allow the company to enhance its global growth with local manufacturing and commercial presence in Europe and Asia.
Magenta is an innovative developer of specialty solid color concentrates for the global fiber industry. The company’s solutions cover a vast range of uses, which include clothing and apparel, outdoor equipment, high-performance products and multiple materials used in the transportation industry. The company’s additional textile growth opportunities include applications within the hygiene, healthcare and medical markets.
Magenta will operate within PolyOne's Global Color, Additives and Inks division that showcased its revolutionary new ColorMatrix Fiber Colorant Solutions, which provides late-stage color injection in fiber applications utilizing liquid solutions, last month.
PolyOne offers both liquid and solid masterbatch solution thus making sure that it caters to the specific needs of its customers. The acquisition is in sync with the company’s 2020 Platinum Vision strategy. The company plans to utilize its invest-to-grow integration approach to help customers innovate and succeed.
PolyOne’s shares closed around 1% higher at $33.22 on Dec 9.
PolyOne is a Zacks Rank #3 (Hold) stock.
Some better-ranked stocks in the basic materials sector are Rayonier Advanced Materials Inc. RYAM, Celanese Corporation CE and Innospec Inc. IOSP. All these stocks sport a Zacks Rank #1 (Strong Buy).
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