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 sales from chemical, resin and plastic items, told LatinFinance in May that it was evaluating targets in Europe, the US and LatAm. Mexichem did not return calls for comment. Its CFO Armando Vallejo Gomez told LatinFinance earlier this year that the company plans to keep acquiring companies until it becomes a world leader in the products it sells. To reach that goal, the chemical, resin and plastic items conglomerate planned to hunt for sizable foreign acquisitions. Vallejo aims to turn Mexichem into the world’s largest integrated production chains of both fluorine and chlorine-vinyl for refrigerant gases, PVC pipes, and other construction material. Mexichem generated $2.2bn in 2009 sales from chemical, resin and plastic items. It was also shopping around Europe and LatAm for a purchase. Mexichem was also considering launching a NYSE IPO to finance its acquisition campaign.