Westlake Chemical Corporation is to acquire German-based Vinnolit Holdings and its subsidiary companies from Advent International, a private equity firm.
Vinnolit is an integrated global leader in specialty polyvinyl chloride (PVC) resins.
The acquisition price of EUR490 million will be financed using existing Westlake cash and credit facilities. The transaction is expected to close in the third quarter of 2014, subject to standard closing conditions, including regulatory review.
Vinnolit has six production facilities located in Gendorf, Burghausen, Cologne, Knapsack and Schkopau in Germany and Hillhouse in the UK. These operations have a combined annual capacity of 780 thousand metric tons of PVC, including specialty paste and suspension grades, 665 thousand metric tons of vinyl chloride monomer (VCM) and 475 thousand metric tons of membrane grade caustic soda.
Vinnolit's products are suitable for a wide range of industrial and building product applications including automotive sealants, cable sheathing, flooring, medical applications, pipes, rigid film, technical coatings, wall covering and window profiles.
Vinnolit's headquarters are located in Ismaning, Germany, outside of Munich. The company generated EUR917 million of revenue in 2013 and employs approximately 1,400 employees.
"The acquisition of Vinnolit is an excellent strategic fit for Westlake. It will allow us to expand our chlorvinyl business globally and adds important specialty PVC products and technology to our existing portfolio," says Albert Chao, Westlake's president and CEO. "Vinnolit is an impressive company with an outstanding reputation for meeting customer needs with superior technology, product quality, and operating excellence. We look forward to working with their talented team as they join the Westlake family of companies."
"We have transformed Vinnolit into the leading specialty PVC manufacturer and remain dedicated to further growing the company's business," says Dr Josef Ertl, managing director of Vinnolit. "We thank Advent for their support and strategic advice in developing Vinnolit and facilitating its successful transformation. We, as a management team, look forward to beginning a new chapter in our company's history and continuing our successful growth path together with Westlake."
Ranjan Sen, general manager at Advent International in Frankfurt, says: "We are delighted with the successful development of Vinnolit and thank its management team and the company's employees for their cooperation and dedication throughout our investment. Vinnolit is well positioned to successfully expand its leadership position in specialty PVC further under the new ownership of Westlake."
