Mexichem, S.A.B. de C.V., a Mexican chemicals producer, said on Tuesday that it has agreed to acquire German company VESTOLIT GmbH.

Based in Marl, Germany, VESTOLIT is Europe's sixth largest PVC manufacturer. It is the only company in Europe that makes High Impact Suspension PVC (HIS-PVC) for weather-resistant windows and is Europe's second-largest producer of paste PVC for floors and wallpapers.

In addition, VESTOLIT produces alkyl-chlorides, a value-added intermediary that has a variety of chemical and industrial applications.

Its total installed PVC capacity is 415,000 tons per year, Mexichem said.

The business will be purchased from accounts and funds managed by Strategic Value Partners LLC for a total of EUR219 million in cash and assumed liabilities. According to Mexichem, this acquisition is in line with its strategy of global growth in high-end specialty products.

Completion of the deal remains subject to regulatory clearance but it is expected to close in the fourth quarter of 2014.

Following the acquisition, Mexichem will consolidate VESTOLIT under its own Chlorine Vinyl chain for accounting purposes. The business itself, however, will continue under its current management and will operate with its existing brand portfolio.

"This transaction is an opportunity to expand our European footprint, enter a new market segment and acquire new technology and best practices for our global Chlorine Vinyl chain," commented Antonio Carrillo, chief executive officer of Mexichem.