Private equity firm One Rock Capital Partners has agreed to acquire plastics distribution business from Nexeo Solutions for an enterprise value of about $640m.
The transaction is expected to close during the first half of this year after Nexeo’s pending acquisition by Univar.
Nexeo Plastics is involved in the distribution of plastics products such as polymer solutions and prime engineering resins.
Via its distribution network, the company connects major suppliers with customers across various industrial segments in over 60 countries in North America, Europe and Asia.
The company, which has a broad product portfolio, uses advanced technology platform to better serve its suppliers and customers.
One Rock managing partner Tony Lee said: “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.
“We look forward to collaborating with Nexeo Plastics’ management team to achieve the full potential of the business.”
Nexeo Plastics provides solutions to meet the flexible packaging requirements of the customers in the food, non-food, shrink, stretch, household and industrial markets.
The firm supplies materials from major suppliers for different manufacturing processes, including injection molding grades for caps and closures, as well as flexible grades for BOPP, blown, cast and laminate film applications.
Nexeo Plastics supplies Hival polymer portfolio, which includes multiple grades of polypropylene, polyethylene, polystyrene and ABS polymers.
Nexeo also provides resins that can meet performance requirements for melt strength, barrier, process-ability, dimensional stability, optics, impact resistance, tamper evidence, reseal-ability, sustainability and safety.
The resins can be used in various applications, including food, beverage, pharmaceutical, personal care and household markets.
Nexeo Plastics executive vice president Shawn Williams said: “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.
“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.”