One Rock Carves Out Plastics Distributor

One Rock Capital Partners has agreed to acquire the plastics distribution business (Nexeo Plastics) of Nexeo Solutions for $640 million.

Nexeo Plastics is a global distributor of plastics, including polymer products and prime engineering resins, to customers in more than 60 countries in North America, Europe and Asia. The business is headquartered in The Woodlands, TX. Click HERE for the Nexeo Plastics web page

The company’s products include acrylonitrile butadiene styrenepolystyrene; polyvinyl chloride; thermoplastic elastomers, polyurethanes, and alloys; styrene acrylonitrile; nylons; plastomers; and others. The company’s products are used in injection molding, extrusion, rotational and blow molding applications in the automotive, compounding, healthcare, packaging, wire & cable, sports and recreational vehicles, lawn and garden, and electronics sectors. Nexeo posted plastics revenues of nearly $2 billion in the fiscal year ended September 30, 2018.

“We are very excited to have One Rock invest in our business, which Nexeo has built into one of the leading global plastics distribution companies,” said Shawn Williams, executive vice president at Nexeo Plastics. “We look forward to operating as a pure-play plastics business and will focus our talent and resources on expanding our service offering for our suppliers and customers worldwide.”

The final sale of Nexeo Plastics will follow Nexeo’s pending $2 billion acquisition by Univar, a chemical and ingredient distributor, which was announced in September 2018. This transaction is expected to close before the end of the second quarter.

“We are excited about the opportunity to create a standalone plastics distribution business and invest in growth by deepening its relationships with customers and supplier partners,” said Tony Lee, a managing partner of One Rock. “We look forward to collaborating with Nexeo Plastics’ management team to achieve the full potential of the business.”

“The acquisition of Nexeo Plastics is the culmination of a yearlong evaluation by One Rock during which we utilized our extensive experience in executing corporate carve-outs, together with our knowledge of the plastics, chemicals and distribution industries,” said R. Scott Spielvogel, a managing partner of One Rock. “We fully expect that we will be able to help management fortify and expand the capabilities of the business, thereby driving value for suppliers and customers alike.”

One Rock invests in companies that are active in the chemicals and process industries; specialty manufacturing and healthcare products; business and environmental services; and food manufacturing and distribution. One Rock has a strategic relationship with Mitsubishi Corporation which provides resources to One Rock and its portfolio companies.  The firm was formed in 2010 by Tony Lee and Scott Spielvogel and is based in New York (www.onerockcapital.com).

© 2019 Private Equity Professional | February 11, 2019

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