Mexichem Announces the Acquisition of Sylvin Technologies Inc.

Transaction Expands Mexichem Compounds Presence in the U.S. Market
with a Strong Team and a Complementary Product and Application Portfolio

TLALNEPANTLA DE BAZ, Mexico–(BUSINESS WIRE)–Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) (“The Company” or “Mexichem”)
announced that it has acquired Sylvin Technologies Inc., a niche PVC
compounds manufacturer based in Denver, Pennsylvania for an Enterprise
Value of $39 million based on a debt free cash free valuation. Sylvin is
expected to have total sales of $29 million for the full year of 2017.
It has a 30-year history of serving a broad range of industries
including: wire and cable, electrical, industrial, automotive, medical
and food products. Mexichem will consolidate Sylvin under the Company’s
Vinyl Business Group as part of its Compounds Business Unit, a leading
supplier of PVC compound solutions serving the global market. Our Vinyl
Business Group reported sales of $2.2 billion for the trailing twelve
months ended September 30, 2017.

Combining Sylvin’s customer-focused business model, strong team and
application development capabilities with Mexichem’s global compounds
business will allow Mexichem to deliver even greater value to its
combined U.S. customers. Sylvin’s key raw materials are PVC resin,
plasticizers and stabilizers, which should bring synergies to Mexichem’s
Vinyl operations. “This transaction continues Mexichem’s strategy of
completing bolt-on acquisitions that expand its portfolio of specialty
products and applications and give access to new end markets and
customers, driving future growth. These products and applications can be
further leveraged globally as we expand in other parts of the world”
said Sameer S. Bharadwaj, President of the Compounds Business Unit.

“The acquisition of Sylvin is a further step towards downstream
integration in specialty products with higher margins that enables
sustainable growth of our return on invested capital over our weighted
average cost of capital in the long run,” Antonio Carrillo, CEO of
Mexichem remarked.

ABOUT MEXICHEM

Mexichem is a global leader in plastic piping and one of the world’s
largest chemical and petrochemical companies. It has more than 50 years
of experience. The Company contributes to global development by
delivering an extended portfolio of products to high growth sectors such
as infrastructure, housing, datacom and water management, among others.
With operations in 37 countries, 120 facilities worldwide and more than
18,000 employees, Mexichem has the rights to produce fluorspar in two
mines in Mexico, as well as 8 formation academies and 15 R&D labs.
Operations are divided into two value chains and three business units:
Ethylene Chain: Vinyl and Fluent Business and Fluor Value Chain, which
includes Fluor business group. Mexichem has annual revenues of US$5.4
billion and has been traded on the Mexican Stock Exchange for more than
30 years. The company is member of the Mexican Stock Exchange
Sustainability Index and the sustainability emerging markets index
FTSE4Good.

Forward-looking Statements

In addition to historical information, this press release contains
"forward-looking" statements that reflect management's expectations for
the future. The words “anticipate,” “believe,” “expect,” “hope,” “have
the intention of,” “might,” “plan,” “should” and similar expressions
generally indicate comments on expectations. The final results may be
materially different from current expectations due to several factors,
which include, but are not limited to, global and local changes in
politics, the economy, business, competition, market and regulatory
factors, cyclical trends in relevant sectors; as well as other factors
that are highlighted under the title “Risk Factors” on the annual report
submitted by Mexichem to the Mexican National Banking and Securities
Commission (CNBV). The forward-looking statements included herein
represent Mexichem’s views as of the date of this press release.
Mexichem undertakes no obligation to revise or update publicly any
forward-looking statement for any reason unless required by law.”

Mexichem has implemented a new Code of Ethics that rules its
relationships with its employees, clients, suppliers and general groups.
Mexichem’s Code of Ethics is available for consulting in the following
link: http://www.mexichem.com/Codigo_de_etica.html Additionally,
according to the terms contained in the Securities Exchange Act No 42,
Mexichem Audit Committee established a mechanism of contact, which
allows that any person that knows the unfulfilment of operational and
accounting records guidelines and lack of internal controls of the Code
of Ethics, from the Company itself or from the subsidiaries that this
controls, file a complaint which is anonymously guaranteed. The
whistleblower program is facilitated by a third party. The telephone
number in Mexico is 01-800-062-12-03. The website is
http://www.ethic-line.com/mexichem and contact e-mail is
[email protected]. Mexichem’s Audit Committee will be notified of
all complaints for immediate investigation.

Contacts

Investor Relations:
Mexichem, S.A.B. de C.V.
Fabiola
Molina del Valle, + (52) 55.5366.4050
[email protected]
www.mexichem.com