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

Print Friendly, PDF & Email

Related Articles

Nautic Buys Spartech From Arsenal Nautic Partners has acquired Spartech, a manufacturer of acrylics and extruded plastics, from Arsenal Capital Partners. Spartech’s acrylic products...
One Equity Closes Carve-Out One Equity Partners has completed the carve-out of ORS MEDCO, a distributor of maintenance and repair products to the industrial and automotive afterm...
Sole Source Sells IFS to Kelso Kelso & Company has acquired a majority equity interest in Individual FoodService, a distributor of foodservice disposables, and janitorial and sa...
GHK Buys Dura Supreme Cabinetry GHK Capital Partners has acquired Dura Supreme Cabinetry from the company’s second-generation founding family. Dura Supreme is a vertically integra...
SFW Exits DaySmart Software SFW Capital Partners has sold DaySmart Software to LLR Partners and Parthenon Capital. DaySmart is a provider of business management software, incl...
Platinum Acquires TruckPro Platinum Equity has acquired TruckPro Holding Corporation from Harvest Partners. TruckPro is a distributor of heavy-duty truck and trailer products...