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PolyOne Reaches Agreement to Sell Non-Core Resin Assets for $250 Million



   PolyOne Reaches Agreement to Sell Non-Core Resin Assets for $250 Million

PR Newswire

CLEVELAND, March 25, 2013

CLEVELAND, March 25, 2013 /PRNewswire/ -- PolyOne Corporation (NYSE: POL), a
premier provider of specialized polymer materials, services and solutions,
announced it has entered into an agreement in which the company will sell its
vinyl dispersion, blending and suspension resin assets to Mexichem, S.A.B. de
C.V. for $250 million in cash.  The sale is subject to satisfaction of
regulatory requirements and other customary closing conditions. 

PolyOne's resin assets are part of its Performance Products and Solutions
segment and generated revenues of $147 million in 2012. 

"Since we began our specialty transformation, we have divested commodity
equity investments including Oxy Vinyls in 2007 and SunBelt in 2011 and
reinvested the proceeds to accelerate the growth of our specialty offerings,"
said Stephen D. Newlin, chairman, president and chief executive officer,
PolyOne Corporation.  "As our only remaining business involved in the direct
manufacture of base resins, we view the sale of our resin production assets as
a natural and next step in the evolution of our portfolio." 

The pending sale's impact to PolyOne earnings in 2013 is dependent on numerous
factors, including timing of the transaction's close.  It is anticipated that
dilution on an annualized basis will be approximately $0.22 per share.

"While the sale is dilutive to earnings in the near term, we remain committed
to our 2015 earnings target of $2.50 per share.  We believe it is in the best
interests of our customers, associates and our shareholders to focus on our
core competence of material science formulation for specialty applications,
rather than base resin production.  This is entirely consistent with our mix
improvement strategy which has delivered substantial shareholder value over
the last five years," Mr. Newlin added.

Mix Shift Improvement

(Photo: http://photos.prnewswire.com/prnh/20130325/CL82498-INFO-a )

POL Share Price 2008-Present

(Photo: http://photos.prnewswire.com/prnh/20130325/CL82498-INFO-b )

"Mexichem is a proven leader and has substantial expertise in base resin
manufacturing.  We believe they will be able to more fully unlock the
potential of our resin production assets, and we look forward to working with
them in the future as a supplier," said Mr. Newlin.

About PolyOne

PolyOne Corporation, with 2012 revenues of $3.0 billion, is a premier provider
of specialized polymer materials, services and solutions. The company is
dedicated to serving customers in diverse industries around the globe, by
creating value through collaboration, innovation and an unwavering commitment
to excellence.  Guided by its Core Values, Sustainability Promise and No
Surprises Pledge^SM, PolyOne is committed to its customers, employees,
communities and stockholders through ethical, sustainable and fiscally
responsible principles.  For more information, visit www.polyone.com.

To access PolyOne's news library online, please visit www.polyone.com/news

Cautionary Note on Forward-Looking Statements

This document contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
give current expectations or forecasts of future events and are not guarantees
of future performance.  They are based on management's expectations that
involve a number of business risks and uncertainties, any of which could cause
actual results to differ materially from those expressed in or implied by the
forward-looking statements.  They use words such as "will," "anticipate,"
"estimate," "expect," "project," "intend," "plan," "believe," and other words
and terms of similar meaning in connection with any discussion of future
operating or financial condition, performance and/or sales.  Factors that
could cause actual results to differ materially from those implied by these
forward-looking statements include, but are not limited to: the time required
to consummate the proposed divestiture; the satisfaction or waiver of
conditions in the sale agreement; any material adverse changes in the business
supporting the resin assets being sold; the ability to obtain required
regulatory or other third-party approvals and consents and otherwise
consummate the proposed divestiture; our ability to achieve the strategic and
other objectives relating to the acquisition of Spartech Corporation,
including any expected synergies; our ability to successfully integrate
Spartech and achieve the expected results of the acquisition, including,
without limitation, the acquisition being accretive; disruptions, uncertainty
or volatility in the credit markets that could adversely impact the
availability of credit already arranged and the availability and cost of
credit in the future; the financial condition of our customers, including the
ability of customers (especially those that may be highly leveraged and those
with inadequate liquidity) to maintain their credit availability; the speed
and extent of an economic recovery, including the recovery of the housing
market; our ability to achieve new business gains; the effect on foreign
operations of currency fluctuations, tariffs, and other political, economic
and regulatory risks; changes in polymer consumption growth rates where we
conduct business; changes in global industry capacity or in the rate at which
anticipated changes in industry capacity come online; fluctuations in raw
material prices, quality and supply and in energy prices and supply;
production outages or material costs associated with scheduled or unscheduled
maintenance programs; unanticipated developments that could occur with respect
to contingencies such as litigation and environmental matters; an inability to
achieve or delays in achieving or achievement of less than the anticipated
financial benefit from initiatives related to working capital reductions, cost
reductions, and employee productivity goals; an inability to raise or sustain
prices for products or services; an inability to maintain appropriate
relations with unions and employees; the inability to achieve expected results
from our acquisition activities; our ability to continue to pay cash
dividends; the amount and timing of repurchases of our common shares, if any;
and other factors affecting our business beyond our control, including,
without limitation, changes in the general economy, changes in interest rates
and changes in the rate of inflation.  The above list of factors is not
exhaustive.

We undertake no obligation to publicly update forward-looking statements,
whether as a result of new information, future events or otherwise.  You are
advised to consult any further disclosures we make on related subjects in our
reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and
Exchange Commission.

Reconciliation of Non-GAAP Financial Measure (Unaudited)
(In millions)

Below is a reconciliation of non-GAAP financial measures to the most directly
comparable measures calculated and presented in accordance with U.S. GAAP.

Specialty Platform
operating income mix      2005Y       2008Y      2010Y        2012Y     2012PF

percentage
Global Specialty      $       0.4 $     17.6 $     49.7 $           $      
Engineered Materials                                    47.0        47.0
Global Color,         4.3         28.1       37.7       66.8        66.8
Additives and Inks
Specialty Platform    $       4.7 $     45.7 $     87.4 $     113.8 $    
                                                                    113.8
Performance Products  75.7        31.3       54.0       74.9        44.9
and Solutions
Distribution          19.5        28.1       42.0       66.0        66.0
SunBelt Joint Venture 91.9        28.6       18.9       -           -
Corporate             (51.5)      (425.1)    (27.7)     (87.6)      (87.6)
Operating income      $   140.3   $  (291.4) $   174.6  $     167.1 $    
(loss) GAAP                                                         137.1
Less: Corporate       (51.5)      (425.1)    (27.7)     (87.6)      (87.6)
operating expense
Operating income      $   191.8   $   133.7  $   202.3  $     254.7 $    
excluding Corporate                                                 224.7
Specialty platform
operating mix         2%          34%        43%        45%         51%
percentage

 

SOURCE PolyOne Corporation

Website: http://www.polyone.com
Contact: Investors, Isaac D. DeLuca, Vice President, Planning & Investor
Relations, PolyOne Corporation, +1-440-930-1266, isaac.deluca@polyone.com, or
Media, Kyle G. RoseDirector, Corporate Communications, PolyOne Corporation,
+1-440-930-3162, kyle.rose@polyone.com
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