(Adds details on Dura-Line business, stock reaction)
MEXICO CITY Aug 18 Mexico's Mexichem said on
Monday it had reached a deal to pay $630 million in cash and
debt to buy U.S. plastic pipe maker Dura-Line Corporation from
private equity firm CHS Capital.
The acquisition of Knoxville, Tennessee-based Dura-Line will
give the Mexican plastic pipe maker its first foothold in the
business for plastic pipes and conduits used in
telecommunications, the company said in a statement.
The deal is subject to regulatory approval and should be
completed within the coming months, the company said.
Shares in Mexichem extended early gains after
the announcement, rising 2.52 percent at 56.90 pesos, close to
an eight-month intraday high hit earlier this month.
Dura-Line has factories in North America, India, Oman,
Europe and South Africa
(Reporting by Michael O'Boyle; editing by Andrew Hay)