Case Study:

O'Sullivan Films, Inc. - PolyOne - Management Buyout

Situation

• The Engineered Films Group (EFG) of PolyOne Corporation was a leading provider of customized, high-performance polymer films for use in diverse applications, including automotive instrument and door panels, flooring, wall coverings, notebook covers, and pool liners.
• PolyOne Corporation (NYSE: POL), a leading global polymer compounding and North American distribution company, made the decision to divest the EFG unit; Management was provided the opportunity to acquire the business unit.
• The EFG was in the midst of a turnaround, which created challenges in arranging the financing of the MBO.

Objective

• Matrix was engaged by management to assist in negotiating the management buyout from PolyOne and to arrange the required debt and equity capital to affect the transaction.

Solution

• Matrix organized the equity investment through contacts in it’s Founders Circle, a group of current and former clients consisting of successful founders and shareholders of privately held businesses.  Simultaneously, Matrix identified and contacted potential senior lenders to provide the financing to close the transaction.
• O’Sullivan Films, Inc., the newly organized company, formed to acquire the business, selected LaSalle Business Credit to complete the senior financing, on very favorable terms for management.