Mexichem Shops in the US

Mexichem Shops in the US


Mexico-based chemical company Mexichem says it is acquiring US-based plastic compounding business AlphaGary for $300m in cash. The seller, Rockwood Holdings, will use proceeds to pay down debt. A Mexico-based equities analyst who covers Mexichem says the deal is good, as it will bring synergies. He says the deal is valued at around 7.0x-7.5x Ebitda, in line with the prices Mexichem has paid for other acquisitions. The deal is expected to close in Q1 2011. Mexichem, which generated $2.2bn in 2009

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