O’Melveny has advised DL Chemical Co, a subsidiary of DL Holdings Co (formerly Daelim Industrial Co), on its merger agreement to acquire 100 per cent of Kraton Corporation (NYSE: KRA), a global sustainable producer of specialty polymers and high-value bio-based products, in an all-cash transaction with an equity value of approximately USD1.6 billion.
The company’s enterprise value was USD2.5 billion.
The agreement was announced on 27 September, 2021 and is subject to certain customary closing conditions, including the receipt of stockholder and regulatory approvals.
Based in Korea, DL Chemical is a petrochemical company with more than 46 years of operational experience and unique technological know-how.
Based in Houston, Texas, Kraton produces polymers used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants and lubricants, and medical, packaging, automotive, paving and roofing products. Kraton is also the largest global provider in the pine chemicals industry and offers its products to a diverse customer base in more than 70 countries worldwide.
The O’Melveny team advising DL Chemical is led by partners Daniel Kim and Andor Terner, counsel Onur Surmeli, and associates Elizabeth Lopez, Hae-In Park, and Mollie Yeh. Partner Sung Pak and counsel Adam Longenbach are advising on the acquisition financing aspects.