(Adds details on Dura-Line business, stock reaction)
MEXICO CITY, Aug 18 (Reuters) - Mexico’s Mexichem said on Monday it had reached a deal to pay $630 million in cash and debt to buy U.S. plastic pipe maker Dura-Line Corporation from private equity firm CHS Capital.
The acquisition of Knoxville, Tennessee-based Dura-Line will give the Mexican plastic pipe maker its first foothold in the business for plastic pipes and conduits used in telecommunications, the company said in a statement.
The deal is subject to regulatory approval and should be completed within the coming months, the company said.
Shares in Mexichem extended early gains after the announcement, rising 2.52 percent at 56.90 pesos, close to an eight-month intraday high hit earlier this month.
Dura-Line has factories in North America, India, Oman, Europe and South Africa
Reporting by Michael O'Boyle; editing by Andrew Hay