Westlake acquire PVC pipe fittings business CertainTeed

Westlake to acquire PVC pipe and fittings business of CertainTeed

4:28 AM, 7th March 2013
Westlake to acquire PVC pipe and fittings business of CertainTeed
Albert Chao, President and CEO, Westlake.

HOUSTON, US: Westlake Chemical Corporation has entered into a definitive agreement with CertainTeed Corporation, a subsidiary of the French public company, Compagnie de Saint-Gobain, to purchase its Pipe and Foundation Group (PFG), a leading producer of PVC pipe and fittings for municipal, water well, mining, agriculture and irrigation applications. The sale is for a purchase price of $175 million in cash, including $22 million of working capital, with closing adjustments. The transaction is expected to close in the 2nd quarter of 2013, subject to standard closing conditions, including regulatory review.

The PFG acquisition includes the PVC pipe, fittings, profiles and foundations business and associated operating facilities in Lodi, California and McPherson, Kansas with production capacity of approximately 150 million pounds per year. Westlake will also acquire technologies and intellectual properties for the production of a number of specialized products, including Certa-Lok restrained joint pipe and YelomineT branded products for a variety of end market applications.

“The acquisition of CertainTeed’s PFG business is an excellent strategic fit for Westlake. When completed, it will enhance our North American Pipe and building products portfolio by adding specialty product lines and supporting technology that we do not currently have. These new products, technologies, and a broader market reach will increase our ability to service our customers’ needs and further differentiate the value of our vinyls integration strategy. CertainTeed is known as a well-run solutions-oriented company with talented people and we look forward to adding this workforce to our team,” said Albert Chao, President and CEO, Westlake.

© WOC News




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