PolyOne sells additives business to investor group.

PolyOne, Cleveland, OH, has signed a definitive agreement to sell its Elastomers and Performance Additives business to an entity formed by an investor group led by Lion Chemical Capital LLC and ACI Capital. The purchase agreement provides that PolyOne will receive gross proceeds before associated fees and costs of approximately $120 million, of which $106 million will be paid in cash and $14 million in the form of a note from the buyer. The Elastomers and Performance Additives business is a merchant provider of customized, high-performance elastomer materials and additives for use in diverse end markets, including the transportation, electrical, industrial and printing industries. Headquartered in Solon, OH, the group consists of five manufacturing facilities in the United States and one each in Mexico and the United Kingdom. Its first rubber compounding facility in China is slated to open near Shanghai later this year. Revenues for the four quarters ended March 31, 2004, were $349 million, which represents 13.5% of PolyOne's total sales from both its continuing and discontinued operations during that period.