Combination Creates a North American Olefins and Vinyls Leader:
Largest LDPE Producer in the Americas; Second-Largest PVC Producer in
North America and the Third-Largest Globally; and the Third-Largest
Chlor-alkali Producer in North America and Globally
Expected Annual Cost Synergies of Approximately $100 Million
Transaction Expected to be Accretive in the First Year Following
HOUSTON--(BUSINESS WIRE)--Aug. 31, 2016--
Westlake Chemical Corporation (NYSE:WLK) announced today that it has
completed the previously announced acquisition of Axiall Corporation
(NYSE: AXLL) 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 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 $7.4 billion and adjusted
EBITDA of $1.4 billion for the twelve-month period ended June 30, 2016.
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.
Albert Chao, Westlake’s President and Chief Executive Officer, said, “We
are pleased to complete this important strategic acquisition and to
welcome Axiall and its talented team into the Westlake family of
companies. This transaction aligns two remarkable companies, creates a
company with greater financial and operational flexibility and
accelerates our growth strategy. We believe that we will be better able
to serve our customers with a more diversified portfolio that should
create significant value and growth opportunities for Westlake
Westlake retained Deutsche Bank Securities Inc. and Goldman, Sachs & Co.
as its financial advisors, Cleary Gottlieb Steen & Hamilton LLP as its
legal counsel, MacKenzie Partners, Inc., and other advisors.
For more information regarding Westlake please visit http://www.westlake.com.
About Westlake Chemical Corporation
Westlake Chemical Corporation is an international manufacturer and
supplier of petrochemicals, polymers and building products with
headquarters in Houston, Texas. The company's range of products
includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and
derivative products, PVC suspension and specialty resins, PVC Compounds,
and PVC building products including siding, pipe, fittings and specialty
components, windows, fence, deck and film. For more information, visit
the company's Web site at www.westlake.com.
Forward Looking Statements
Except for the historical information contained herein, the matters
discussed in this press release are forward-looking statements that
involve certain risks and uncertainties. These risks and uncertainties
relate to the risks and uncertainties inherent in the petrochemicals,
polymers and building products industries discussed in our filings with
the Securities and Exchange Commission. Forward-looking statements, like
all statements in this press release, speak only as of the date of this
press release (unless another date is indicated). We do not undertake
any obligation to publicly update any forward-looking statements,
whether as a result of new information, future events, or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160831005800/en/
Source: Westlake Chemical Corporation
Ben Ederington, 713-960-9111
Westlake Chemical Corp.