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

Mon Mar 25, 2013 7:05am EDT

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


SOURCE  PolyOne Corporation


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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