Mexichem says recent deals to add $110 mln-$120 mln to EBITDA
MEXICO CITY Aug 20 (Reuters) - Mexichem's two recent acquisitions will add $110 million to $120 million to its earnings before interest, taxes, depreciation and amortization (EBTIDA) in the 12 months after the deals close, the company's chief executive said on Wednesday.
Earlier this month, chemicals producer Mexichem said it had bought Germany-based Vestolit, a maker of durable plastics used for windows, flooring and pipes, for 219 million euros, and U.S. plastic pipe maker Dura-Line for $630 million in cash and debt.
Mexichem Chief Executive Antonio Carillo said on a conference call on Wednesday he expected the Vestolit deal to close at the end of the year, and Dura-Line by end-September.
Carillo said it would end the year with a net debt to EBITDA ratio of 2.2 to 2.3, slightly above the internal ceiling of 2 times.
Shares of Mexichem closed up 0.6 percent at 58.14 pesos on Wednesday before the call.
(Reporting by Christine Murray; editing by Matthew Lewis)
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