Chemicals giant Mexichem has acquired Vinyl Compounds Holdings Ltd (VCHL), the UK based manufacturer of technical PVC compounds for a range of industries including footwear and consumer goods.

Based in Derbyshire, VCHL has annual revenues of US$40m, and Tlalnepantla, Mexico based Mexichem says the deal will provide it with access to new geographies and end markets, as well as expand its specialty products portfolio.

Mexichem will consolidate VCHL under its compounds business unit, which supplies PVC compound solutions. In turn, this is part of the company's Vinyl Business Group, which reported sales of $2bn for the 12 months to 30 September 2016.

The addition of VCHL will expand Mexichem's ability to meet global PVC compound demand and will enable further vertical integration of its compounds business unit operations through VCHL's stabiliser technologies and recycled PVC capabilities.

VCHL's key raw materials are PVC resin and plasticisers, which should bring additional synergies to Mexichem's Vinyl operations.

"With the benefit of Mexichem's resources, VCHL will be able to anticipate and more fully address the needs of its customers as we move forward together," says Sameer Bharadwaj, president of the compounds business unit.

Mexichem has annual revenues of US$5.7bn and has been traded on the Mexican Stock Exchange for over 30 years.