PolyOne begins 2018 with an acquisition
On January 2, 2018, PolyOne (POL) announced that it acquired Spain-based IQAP Masterbatch Group. It is a privately owned company specialized in specialty colorants and additives founded in 1979 by Xavier Rovira. It caters to industries like transportation, packaging, consumer, wire & cable, and textiles.
The acquisition could help POL to increase its presence in Europe. As a part of the deal, POL will get two production facilities in Spain and an additional manufacturing facility in the Czech Republic. However, POL did not disclose the financial aspects of the deal.
Robert Patterson, PolyOne’s chair, president, and CEO, said, “IQAP is a fantastic addition to our longstanding and growing expertise in color and additives innovation. The end markets that IQAP serves are perfectly aligned with areas PolyOne knows very well, and together we will advance the possibilities for our European customers working to meet demanding new standards for design, functionality and performance.”
PolyOne’s stock performance
PolyOne stock closed at $45.55 and rose 4.7% for the week ended January 5, 2018. POL’s gain in stock price has resulted in the stock trading 9.0% above the 100-day moving average price of $41.77. In 2017, the stock returned ~36.0%. Analysts are positive on the stock and have recommended a target price of $46.67. POL’s 14-day RSI of 67 indicates that the stock is neither overbought nor oversold.
Investors can indirectly hold PolyOne by investing in the PowerShares DWA Basic Materials Momentum Portfolio (PYZ), which invests 3.3% of its portfolio in PolyOne. The fund also provides exposure to Chemours (CC), FMC (FMC), and Albemarle (ALB), which have weights of 4.1%, 4.0%, and 3.6%, respectively, as of January 5, 2018.