Westlake Chemical Acquires Specialty PVC Producer Vinnolit
HOUSTON, May 28, 2014
HOUSTON, May 28, 2014 /PRNewswire/ -- Westlake Chemical Corporation (NYSE:
WLK) announced today that it has signed a definitive agreement to acquire
German-based Vinnolit Holdings GmbH and its subsidiary companies from Advent
International, a private equity firm. Vinnolit is an integrated global leader
in specialty polyvinyl chloride ("PVC") resins. The acquisition price of €490
million will be financed using existing Westlake cash and credit facilities.
The transaction is expected to close in the third quarter of 2014, subject to
standard closing conditions, including regulatory review.
Vinnolit has six production facilities located in Gendorf, Burghausen,
Cologne, Knapsack and Schkopau in Germany and Hillhouse in the United Kingdom.
These operations have a combined annual capacity of 780 thousand metric tons
of PVC, including specialty paste and suspension grades, 665 thousand metric
tons of vinyl chloride monomer ("VCM") and 475 thousand metric tons of
membrane grade caustic soda. Vinnolit has a world class research and
development facility in Gendorf and applications laboratory in Burghausen.
Vinnolit's products are suitable for a wide range of industrial and building
product applications including automotive sealants, cable sheathing, flooring,
medical applications, pipes, rigid film, technical coatings, wall covering and
Vinnolit's headquarters are located in Ismaning, Germany, outside of Munich.
The company generated €917 million of revenue in 2013 and employs
approximately 1,400 employees.
"The acquisition of Vinnolit is an excellent strategic fit for Westlake. It
will allow us to expand our chlorvinyl business globally and adds important
specialty PVC products and technology to our existing portfolio," says Albert
Chao, Westlake's President and CEO. "Vinnolit is an impressive company 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 as they join the Westlake family of companies."
"We have transformed Vinnolit into the leading specialty PVC manufacturer and
remain dedicated to further growing the company's business," commented Dr
Josef Ertl, Managing Director of Vinnolit, on behalf of the management board.
"We thank Advent for their support and strategic advice in developing Vinnolit
and facilitating its successful transformation. We, as a management team, look
forward to beginning a new chapter in our company's history and continuing our
successful growth path together with Westlake."
Ranjan Sen, General Manager at Advent International in Frankfurt, said: "We
are delighted with the successful development of Vinnolit and thank its
management team and the company's employees for their cooperation and
dedication throughout our investment. Vinnolit is well positioned to
successfully expand its leadership position in specialty PVC further under the
new ownership of Westlake."
For more information regarding this acquisition please visit the company's web
site at http://www.westlake.com/fw/main/presentations-37.html.
Westlake Chemical Corporation (WLK)
Westlake Chemical Corporation is an international manufacturer and supplier of
petrochemicals, polymers and building products with headquarters in Houston,
Texas. The company's range of products includes: ethylene, polyethylene,
styrene, propylene, caustic, VCM, PVC resin and PVC building products
including pipe and specialty components, windows and fence. For more
information, visit the company's Web site at www.westlake.com.
SOURCE Westlake Chemical Corporation
Contact: Media Relations - David R. Hansen - 713.960.9111, Investor Relations
- Steve Bender - 713.960.9111
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