Acquisition of ColorMatrix Corporation by PolyOne Corporation
MILWAUKEE (December 21, 2011) – Grace Matthews, Inc. announced today the sale of ColorMatrix Group, an Audax Group portfolio company and a world leader in colorants and additives for plastics, to PolyOne Corporation (NYSE: POL) for $486 million. ColorMatrix, based in Berea, Ohio, primarily focuses on technical solutions for the beverage packaging, industrial extrusion, performance molding, and fiber end markets. ColorMatrix’s global sales and EBITDA for June 30, 2011, were $196.8 million and $43.6 million, respectively. Grace Matthews advised the Audax Group and ColorMatrix Group.
Based on its expertise in chemicals, plastics, and additives, Grace Matthews (along with a co-advisor) was engaged by Audax Group to develop and execute a strategy to maximize value to a strategic buyer. Having advised the founders on their $175-million sale of the company to Audax Group in 2006, Grace Matthews was very familiar with ColorMatrix.
“When Grace Matthews worked with ColorMatrix in 2006 for its initial sale to Audax, ColorMatrix was already a great business. Through acquisitions, management additions, and strategic planning, Audax was able to expand ColorMatrix’s global footprint and build it into a worldwide leader in plastic additives and colorants. Under PolyOne’s stewardship, it is exciting to think about the next steps for ColorMatrix,” said Doug Mitman, Managing Director at Grace Matthews.
The marketing process for ColorMatrix involved a broad auction that included private equity and strategic buyers. Grace Matthews focused solely on high potential strategic buyers within the specialty chemicals industry. After extensive research on market participation, product portfolios, geographic footprints, and potential synergies, Grace Matthews targeted certain buyers, including PolyOne, for introductory meetings. These “fireside chats” informally introduced the ColorMatrix story, highlighted business fit, and generated strong strategic interest from a number of strategic bidders, including PolyOne.
“As a former operations person, I was impressed with both the depth and quality of the management team and the company itself. ColorMatrix is one of the best-run businesses that I have seen,” said Kevin Yttre, Vice President at Grace Matthews.
ABOUT COLORMATRIX GROUP
ColorMatrix, based in Berea, Ohio, is a leading global innovator of liquid color and additive technologies for plastics. ColorMatrix’s advanced liquid colorant and additive technologies are engineered to improve the aesthetics, sustainability, performance, and processing of plastics for consumer and industrial applications.
ABOUT AUDAX GROUP
Audax Group, with offices in Boston and New York, is a premier investor in middle-market companies. Established in 1999, Audax manages over $4.8 billion of capital through its private equity, mezzanine debt, and senior secured debt funds. Audax focuses on building companies with leading market positions and superior management teams.
ABOUT GRACE MATTHEWS
Grace Matthews, Inc., a Milwaukee based investment bank, provides merger, acquisition and corporate finance advisory services to private and public companies. Over the past decade, Grace Matthews has successfully advised over 150 transactions on behalf of clients ranging from private, middle-market companies to large, foreign or U.S.-based multi-nationals. For more detailed information on Grace Matthews, Inc., visit www.gracematthews.com.
Grace Matthews’ goal is to help business owners, corporate managers, and other stakeholders unlock the value of their businesses by employing strategies that maximize value and achieve other business objectives.