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Westlake Chemical to Buy PVC Compounding Firm
September 26, 2018
1 Min Read
A NAKAN facility in Mexico. Image courtesy of Google Maps
Houston-based Westlake Chemical Company plans to purchase global PVC compounding solutions firm NAKAN from a Los Angeles private equity firm. On Tuesday, the firm announced it made an exclusive, binding offer to OpenGate Capital to acquire the company.
“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,” Westlake President and Chief Executive Officer Albert Chao said in a press release. “NAKAN is an impressive business with an outstanding reputation for meeting customer needs with superior technology, product quality, and operating excellence.”
The Reims, France headquartered compounding firm owns eight production plants across the globe, including sites in China, France, and Mexico. NAKAN also operates a research facility in France and an application lab in the United States. Its products are mainly used by clients in the automotive, building and construction, and medical industries.
Westlake said the acquisition offer entails a payment of $265 million in cash, subject to adjustment, if the firms enter a negotiated, mutually binding purchase agreement.
Pending the completion of regulatory approvals and other closing conditions, the company expects the deal to close in early 2019.
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