Westlake acquire Axiall $3.8 billion in cash

Westlake to acquire Axiall for $3.8 billion in cash

4:52 AM, 15th June 2016
Westlake to acquire Axiall for $3.8 billion in cash
Westlake Chemical Corporation headquarters in Houston, US. (File photo)

HOUSTON/ATLANTA, US: Westlake Chemical Corporation and Axiall Corporation have entered into a definitive agreement under which Westlake will acquire all of the outstanding shares of Axiall for $33.00 per share in an all-cash transaction, representing an enterprise value of approximately $3.8 billion, including debt and certain other Axiall liabilities.

The transaction has been approved by the boards of directors of both companies and is expected to be completed by the fourth quarter of 2016.

The combined company will be the third-largest chlor-alkali producer and the second-largest polyvinyl chloride (PVC) producer in North America, with expected combined pro forma revenues of$7.6 billion and EBITDA of $1.5 billion for the last 12 months ended Q1 2016.

The combination creates a stronger company with significantly increased scale, greater product diversity and integration throughout the value chain. Westlake expects the transaction to be accretive to its earnings in the first year following close and expects annualized cost synergies of approximately $100 million based on its estimates.

Westlake noted that, upon completion of the transaction, it looks forward to working with Lotte Chemical on its current joint venture with Axiall, LACC LLC, which is building an ethane-based ethylene plant in Lake Charles, US.

“We believe that after this transaction we will be better able to serve our customers with a more diversified portfolio that should create significant value and growth opportunities for Westlake stockholders. We have tremendous respect for Axiall's employees and look forward to working closely with them to achieve these goals," said Albert Chao, president and CEO of Westlake.

“We believe this strategic combination will drive significant value for our customers and business partners as we create a North American chlorovinyls leader with a highly integrated chain, diverse product portfolio and a globally competitive cost structure. We look forward to working closely with the Westlake team to ensure a smooth transition and complete the transaction as expeditiously as possible,” said Timothy Mann Jr, president and CEO of Axiall.

Deutsche Bank and Goldman, Sachs & Co are acting as financial advisors and Cleary Gottlieb Steen & Hamilton LLP is acting as legal counsel to Westlake.

Morgan Stanley & Co LLC and Barclays are acting as financial advisors and Jones Day is acting as legal counsel to Axiall. Weil, Gotshal & Manges LLP is acting as legal counsel to the Axiall board of directors.

© Worldofchemicals News

Read the latest news from Westlake:

Westlake awards scholarships to 50 college students of employees



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

Hexion to build new analytical laboratory in US

STAFFORD, US: Hexion Inc (formerly known as Momentive Specialty Chemicals Inc) said that it is building a new analytical laboratory at its technology ...

Read more
Unipetrol to acquire Czech Republic company in €1mn deal

PRAGUE, CZECH REPUBLIC: Unipetrol RPA, a wholly owned subsidiary of Unipetrol AS has signed a share purchase agreement with Anwil SA, under which it w ...

Read more
Ganesh Srinivasan feels functionality for textiles is the need of the hour

In an interview Ganesh Srinivasan, CTO, Resil Chemicals Pvt Ltd with Shivani Mody, Editor, Chemical Today magazine, talks about product innovation and ...

Read more
‘Udta Punjab’ bollywood movie saga exposes misuse of drugs

BANGALORE, INDIA: ‘Udta Punjab’ the much-awaited controversial drug-themed Bollywood film, has been cleared for release by the censor boar ...

Read more
BASF launches innovative coatings solution for rotor blades

LUDWIGSHAFEN, GERMANY: BASF SE has launched an innovative coatings solution, RELEST Wind LEP S for rotor blades, supporting the wind energy sector wit ...

Read more
Gevo sets price of $9.5 mn common stock for public offering

ENGLEWOOD, US: Gevo Inc said that it has priced its best efforts public offering of common stock. It has agreed to sell 21,080,456 shares of common st ...

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