PVC Maker Kem One may Go to Apollo
French PVC maker Kem One is up for sale again. The company said its president and majority shareholder Alain de Krassny, who bought the erstwhile Arkema business out of the bankruptcy of a Swiss investor in 2015, is in exclusive talks about a deal with Apollo Global Management. The proposed sale could be finalized by the end of 2021.
After successfully transforming the business through a “robust investment program,” de Krassny, who holds an estimated 90% of the plastics producer, said he believes Kem One is “well-positioned for future growth under the ownership of the Apollo Funds.”
Since being bought by the French businessman, Kem One said it has undergone a “complete transformation” through a €500 million investment program to improve the quality and reliability of production facilities while lowering production costs and reducing its environmental footprint.
The turnaround strategy was anchored by three strategic projects, starting with the conversion and upgrade of the electrolysis unit at the company’s Lavéra plant, completed in 2017. This was followed by construction of an ethylene storage terminal at the company’s Fos-sur-Mer plant, which is due to be completed during the upcoming fourth quarter. A third project, the conversion and upgrade of the electrolysis units at Fos-sur-Mer is planned to be launched in the coming months.
With 1,400 employees, Kem One has eight production facilities for PVC and PVC compounds, along with precursors VCM, EDC and chlorine, across eight sites in France and Spain. With output capability nearing 1 million t/y, it has leading positions in Europe for both mass and suspension PVC, and is an established player in specialty markets such as including paste grade PVC and post-chlorinated PVC.
Financial terms of the planned sale will not be disclosed, Kem One said.
Author: Dede Williams, Freelance Journalist
