Mexichem to acquire pipe maker Dura-Line

  • Mexichem acquires manufacturer of HDPE conduits, ducts & pipes for USD630 million
  • Mexichem’s strategy: vertically integrated chemical company

Mexichem announced that it has reached an agreement to acquire Dura-Line Corporation from CHS Capital for a total of USD630 million, advancing Mexichem’s strategy of global growth in high-end specialty products.

Based in Knoxville, Tennessee, USA, Dura-Line is a manufacturer of high-density polyethylene (HDPE) conduits, ducts and pressure-pipes for telecom and data communications, energy and infrastructure industries. Dura-Line has manufacturing facilities in North America, India, Oman, Europe, and South Africa. The acquisition of Dura-Line will be a further step in Mexichem’s strategy of becoming a global, vertically integrated chemical company with a focus on high-end specialized products, according to Antonio Carrillo, CEO of Mexichem.

The transaction is subject to regulatory approvals and is expected to close by the end of the third quarter of 2014. Once the transaction has closed, Mexichem will consolidate Dura-Line under the Company’s Integral Solutions chain for accounting purposes. Dura-Line will continue to operate under its current management and with its existing brand portfolio.

Mexichem will host a conference call to discuss the transaction on Wednesday, August 20, 2014. Details to follow.

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