PolyOne Corp. acquired ColorMatrix for $486 million in a move the company says will not only accelerate its specialization strategy, but also expand its geographic presence in Asia and Brazil, while creating an entry point into Russia. Likening the move to its 2008 acquisition of custom elastomer supplier GLS, Stephen D. Newlin, PolyOne's chairman, president and CEO, called the purchase of ColorMatrix, which had sales of $196.8 million for the year ended in June, a "game-changer."

ColorMatrix, which itself acquired custom silicone firm Gayson in April, is a supplier of specialty additives, liquid colorant and dosing technologies. Within packaging, its products are used to increase product shelf life, preserve taste and improve recyclability. In fluoropolymers, it supplies colorant and specialty additives that provide lubricity, high-level heat insulation, static dissipation and x-ray opaqueness. ColorMatrix's Gayson acquisition provided custom color dispersions used in silicone processing for a range of medical, consumer and automotive applications.

PolyOne officials noted that this latest acquisition, which will be financed with a combination of cash on hand and approximately $300 million of long term debt, will result in more than 50% of its operating income being generated by specialty businesses, compared to only 2% in 2005. Since 2002, ColorMatrix enjoyed an organic growth rate of 16% for its EBITDA, with approximately 70% of its revenues coming from outside North America. The acquisition is subject to regulatory approvals and is expected to close late this year.