HOUSTON--(BUSINESS WIRE)--Sep. 25, 2018--
Westlake Chemical Corporation (NYSE: WLK) announced today that it has
issued an exclusive, binding offer to acquire NAKAN, a global
compounding solutions business, from Los Angeles-based private equity
firm, OpenGate Capital.
NAKAN, headquartered in Reims, France, has eight production facilities,
located in China, France, Germany, Italy, Japan, Mexico, Spain and
Vietnam, as well as a world-class research facility in France and
application laboratory in the United States. NAKAN’s products are used
in a wide-variety of applications, including in the automotive, building
and construction, and medical industries. NAKAN generated approximately
$300 million of revenue in the most recent twelve-month period.
Under the terms of the offer, which is subject to exclusivity
protection, Westlake will pay approximately $265 million in cash,
subject to adjustment. The binding offer was made in order to permit
NAKAN to proceed with its consultation obligations with French works
councils prior to entering into a negotiated, mutually binding purchase
agreement.
“The combination of NAKAN with Westlake’s existing compounding business
will present an excellent strategic fit. It will allow us to expand our
compounding business globally and add important specialty products and
technology to our existing portfolio,” said Albert Chao, Westlake’s
President and Chief Executive Officer. “NAKAN is an impressive business
with an outstanding reputation for meeting customer needs with superior
technology, product quality, and operating excellence. We look forward
to working with their talented team once they join the Westlake family
of companies.”
The transaction is expected to close by early 2019, subject to receipt
of regulatory approvals, completion of required employee consultation
procedures and other customary closing conditions.
About Westlake
Westlake Chemical Corporation is an international manufacturer and
supplier of petrochemicals, polymers and building products with
headquarters in Houston. The company's range of products includes:
ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative
products, PVC suspension and specialty resins, PVC compounds, and PVC
building products including siding, pipe, fittings and specialty
components, windows, fence, deck and film. For more information, visit
the company's website at www.westlake.com.
Cautionary Statement Regarding Forward-Looking Statements
Except for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve certain risks and uncertainties. These risks and uncertainties
relate to, among other things, the risks and uncertainties inherent in
the petrochemicals, polymers and building products industries discussed
in our filings with the Securities and Exchange Commission, as well as
the risks and uncertainties inherent in the binding offer and
transaction involving NAKAN. Forward-looking statements, like all
statements in this press release, speak only as of the date of this
press release (unless another date is indicated). We do not undertake
any obligation to publicly update any forward-looking statements,
whether as a result of new information, future events, or otherwise.
.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180925005217/en/
Source: Westlake Chemical Corporation
Westlake Chemical Corporation
Media Inquiries:
Benjamin
Ederington, 713-960-9111
or
Investor Inquiries:
Steve
Bender, 713-960-9111
