Kraton sell Cariflex biz unit Daelim $530 mn

Kraton to sell Cariflex biz unit to Daelim for $530 mn

5:57 AM, 31st October 2019
Kraton logo

HOUSTON, US: Kraton Corporation has agreed to sell its Cariflex business unit (Cariflex) to Daelim Industrial Co Ltd (Daelim) for a purchase price of $530 million.

The transaction is expected to close in the first quarter of 2020.

"Cariflex is an attractive business with a robust growth profile and pro forma Adjusted EBITDA margins in excess of 30%. We undertook the strategic review of the Cariflex business to explore the possibility of unlocking value for the benefit of our shareholders, as we felt the intrinsic value of the Cariflex business was not appropriately reflected in Kraton's overall valuation," said Kevin M. Fogarty, Kraton's President and Chief Executive Officer. 

"We are excited to have found a strong strategic home for Cariflex in Daelim, a leading petrochemical and engineering & construction company based in Korea. The acquisition of Cariflex will provide Daelim with an excellent opportunity to strengthen its polymer presence globally. We believe that this transaction delivers significant value to Kraton shareholders. Moreover, we intend that sales proceeds will allow us to significantly strengthen our balance sheet and improve our leverage profile, positioning us for future growth in our core polymer and chemical businesses," added Fogarty. 

"Cariflex is a global leader in isoprene rubber latex and this combination will allow us to provide our customers with a wider range of innovative products while adding the ability to serve the medical and other high-end markets. We are delighted to welcome Cariflex employees to the team and will work together for a seamless transition and integration of the business. By supporting the combined capabilities, talent, and resources with continued investment to expand the business globally, we will further enhance value for our shareholders," said Sang Woo Kim, Vice Chairman and Chief Executive Officer of Daelim.

J.P. Morgan Securities LLC acted as exclusive financial advisor to Kraton and Baker McKenzie served as legal advisor. UBS Securities LLC acted as exclusive financial advisor to Daelim and Paul Hastings LLP acted as legal advisor.

© Worldofchemicals News

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


McDermott signs MoU with Darwin Clean Fuels for condensate refinery

HOUSTON, US: McDermott International Inc has signed a Memorandum of Understanding (MOU) with Darwin Clean Fuels Pty Ltd. The MOU is for the feasi ...

Read more
AkzoNobel to provide coatings technology for Ocean Cleanup’s new project

AMSTERDAM, NETHERLANDS: AkzoNobel is providing coatings technology for the garbage-gathering system for a new project to help rid the seas of plastic ...

Read more
Ineos Styrolution, Sirap agree joint project for depolymerisation of polystyrene

LONDON, UK: Ineos Styrolution announced an agreement with Sirap, an international leader in the production of food packaging (particularly of XPS base ...

Read more
Linde starts air separation units in Eastern China Chemical Park

GUILDFORD, UK: Linde has started up two plants to supply oxygen and nitrogen to Taixing Jinyan Chemical Technology Co Ltd, (Taixing Jinyan) to support ...

Read more
Biesterfeld, NUWEN extend European partnership

HAMBURG, GERMANY: Biesterfeld Spezialchemie and French-based cosmetic ingredients company NUWEN signed a new agreement to intensify their cooperation ...

Read more
Orion to open technical service applications laboratory in US

HOUSTON, US: Orion Engineered Carbons SA said that it will open a new technical service applications laboratory in New Jersey, US. Orion is investing ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X