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Westlake Chemical to buy Nakan for $265 million
HOUSTON, September 25, 2018 (PCW) -- Westlake Chemical Corporation 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 research facility in France and application laboratory in the United States.
NAKAN’s produces compounds made from PVC and other materials that 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 acquisition of NAKAN with Westlake’s existing compounding business will allow Westlake to expand its compounding business globally and add important specialty products and technology to its existing portfolio.
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. -- Donna Todd