By Stephen Downer
CORRESPONDENT
Published: August 18, 2014 2:05 pm ET
Updated: August 18, 2014 2:08 pm ET
MEXICO CITY — PVC pipe and specialty chemicals maker Mexichem SAB de CV said Monday it has agreed to buy Dura-Line Corp., a prominent manufacturer of high density polyethylene conduit, duct and pressure pipe for telecommunications and data communications, from CHS Capital for $630 million.
Mexichem CEO Antonio Carrillo described the deal, which is subject to regulatory approval, as “a further step in our strategy of becoming a global, vertically integrated chemical company with a focus on high-end specialized products and solutions.”
The acquisition is Mexichem’s second major foray into international markets this month. On Aug. 5 it agreed to buy German PVC paste producer Vestolit GmbH from investment company Strategic Value Partners LLC (SVP Global) for 219 million euros ($293 million).
Dura-Line is one of the largest plastic pipe extruders in North America, according to Plastics News’ rankings. Based in Knoxville, Tenn., Dura-Line supplies the energy and infrastructure industries, in addition to the telecom and data communications sectors. It has manufacturing operations in the United States, Mexico, India, Oman, Europe and South Africa.
The company posted 2013 sales of $630 million, including North American pipe sales of $475 million, according to PN’s recent ranking.
Dura-Line’s international footprint will allow Mexichem to “increase penetration in key markets, and will also provide a platform for growth in new geographies for all of Mexichem’s products,” Carrillo said in a statement posted on the Mexican Stock Exchange.
CHS Capital is based in Chicago. The private equity firm bought Dura-Line from Boston-based equity company Audax Group in 2012. Shortly after finalizing that deal, Dura-Line bought Polypipe Holdings Inc. of Gainsville, Texas.
The company has continued to pursue growth under CHS. Earlier this year, Dura-Line announced plans to spend $10 million on technology and infrastructure that will increase capacity at three of its 10 U.S. plants, in Gainesville and Midland, Texas, and Elyria, Ohio. The technology upgrade includes extruders, gravimetric controls, monitoring systems and automation.
Now Dura-Line is under the umbrella of a publicly traded chemical company.
“Joining an organization with Mexichem’s scale will provide strong support for our existing operations and brands, and will enhance the future growth of the business,” Dura-Line’s President and CEO Paresh Chari said in a news release.
Mexichem, of Tlalnepantla, a municipality on the northern edge of Mexico City, reported net sales of $5.1 billion in 2013, up from $4.7 billion in 2012 and $3.7 billion in 2011. | 
