One Rock Capital Partners has announced that one of its affiliates has entered an agreement to acquire Texas-based Nexeo Plastics, the plastics distribution business of Nexeo Solutions, for an enterprise value of $640m.
The transaction is expected to close during the first half of this year after Nexeo’s pending acquisition by Univar.
The company will use the proceeds to reduce debt.
Nexeo Plastics is involved in the distribution of plastics products, including polymer products and prime engineering resins.
Through its distribution network, Nexeo Plastics connects suppliers with customers across industrial segments in more than 60 countries in North America, Europe, and Asia.
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 uses its proprietary technology platform to serve its suppliers and customers, while it has an extensive product portfolio and wide distribution reach.
One Rock managing partner Scott Spielvogel said: “The acquisition of Nexeo Plastics is the culmination of a year-long evaluation by One Rock during which we utilised our extensive experience in executing corporate carve-outs, together with our knowledge of the plastics, chemicals and distribution industries.
“We fully expect that we will be able to help management fortify and expand the capabilities of the business, driving value for suppliers and customers alike.”
One Rock works with company management and its operating partners to develop a business plan that focuses on growing the enterprise and enhancing its profitability to increase long-term value.
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.”