Reporter|Zhuang Jian

Recently, Sinochem International (600500.SH) officially acquired Elix Polymers (hereinafter referred to as Elix), a Spanish-based specialty engineering plastics manufacturer, and completed all delivery procedures.

In October last year, Sinochem International announced the deal, which will acquire the engineering plastics company established in 1975 with a valuation of no more than 144 million euros (about 1.12 billion yuan).

Elix is well known for its high strength and tough engineering plastics ABS, which can be used in automotive, electronics and medical applications. The company's operating income in 2017 was 219 million euros (about 1.69 billion yuan), and net profit reached 9.71 million euros (about 74.77 million yuan).

Previously, Elix was owned by Elix Holding, a joint venture between private equity funds Sun Capital and Elix executives.

In this acquisition, Sinochem International (Singapore) Co., Ltd., a wholly-owned subsidiary of Sinochem International, established the holding platform company SPV with Seth Holdings Corporation Limited and Elix management. Among them, Sinochem International invested 36 million euros (about 278 million yuan) in the joint venture company, with a shareholding ratio of 75.87%. Subsequently, SPV and Elix Holding reached an agreement to acquire Elix.

Elix was originally part of the Bayer Group of Germany and was later divested by the European Union's antitrust policy and acquired by Sun Capital in 2012.

Currently, Elix's business is focused on the European and North American markets. In a press release issued by Elix's official website, the company said that the company will focus more on Asia, especially the Chinese market in the future. Sinochem International has planned to build a new ABS production line in China with the acquisition.

Liu Hongsheng, general manager of Sinochem International, said last month that Elix’s merger and acquisition case reflects the company’s new changes in the acquisition of the target. Sinochem International will pay more attention to the technological advancement of the company, rather than the company’s sales scale and market. Indicators such as occupancy.

Sinochem International's last big overseas acquisition occurred in 2016, and it acquired 54.99% of the shares of Halcyon Agr with a valuation of 2.09 billion yuan, becoming the company's largest shareholder. Sinochem International has become one of the world's three major natural rubber suppliers, and is the first echelon with Thailand's Hongman and Shi Dong.

In addition to the new materials sector, Sinochem International has recently deployed frequently in the new energy industry. In October last year, the company acquired Huai'an Junsheng New Energy Technology Co., Ltd. (hereinafter referred to as Junsheng New Energy) and obtained about 80% of its shares. Junsheng New Energy is building a new ternary lithium battery production base in Huai'an, Jiangsu Province. It is expected that the first phase of the 1Gwh project will be trial-produced in the middle of this year.

The goal set by Sinochem International for the next decade is to become a global chemical material and new energy company. At the end of last year, the only A-share listed company of Sinochem Group just celebrated its 20th anniversary.