Mitsubishi Chemical Performance Buys All of AdvanSource's Assets in $7.25 Million Deal.
Mitsubishi Chemical Performance Polymers, Inc., a subsidiary of Mitsubishi Chemical America, Inc. and its shareholder, Mitsubishi Chemical Corp., has purchased all of AdvanSource Biomaterials Corp.'s assets for $7.25 million. AdvanSource is a materials technology company specializing in medical-grade polymers for long and short-term applications.
"This transaction offers our shareholders a meaningful premium," says Michael Adams, chief executive officer of AdvanSource. "We are confident that Mitsubishi Chemical Performance Polymers will expand the solutions and capabilities offered to AdvanSource's customers while maintaining the service they have come to expect."
"The joining of AdvanSource and Mitsubishi Chemical Performance Polymers provides an excellent pathway for Mitsubishi Chemical Performance Polymers to accelerate its product development efforts and penetration into the specialty medical resins market segment," says Steve Gregory, president of Mitsubishi Chemical Performance Polymers. "We are excited about the possibilities this transaction will provide for Mitsubishi Chemical Performance Polymers and the medical market as it leverages core strengths of both companies and is strategically aligned to our objective to be one of the world's leaders in medical specialty materials solutions."
The transaction is still subject to the satisfaction or waiver of customary closing conditions, including approval by AdvanSource's stockholders. It has been approved by the board of directors of both companies, is not subject to any financing conditions, and is expected to close in the first quarter of 2020.
AdvanSource develops advanced polymer materials which provide critical characteristics in the design and development of medical devices and will continue to operate its business in the ordinary course until the transaction closes. The company estimates that the cash value per stockholder should be approximately $0.20 per share, a 43 percent premium over the company's average closing price during the 90 trading days ending November 22, 2019.
Mitsubishi Chemical Performance Polymers operates facilities in Bellevue, Ohio; Warren, Mich.; Greer, S.C.; and Brazil. The company seeks to innovate in compounding polymerization and polymer modification technologies with a view towards sustainability practices in a circular economy. Its product portfolio includes: Tefabloc[TM], Thermorun[TM], Trexprene[TM] and Zelas[TM] thermoplastic elastomers; Modic[TM] functional polyolefins; Linklon[TM] cross-linked polyolefins; Olefista[TM] non-halogenated fire-retardant polyolefins; Marfyflo[TM], Sunprene[TM], and Vinika[TM] polyvinylchloride elastomers; and BIOPBS[TM], DURABIO[TM], and Forzeas[TM] bio-sustainable thermoplastic resins.
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|Date:||Jan 1, 2020|
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