Westlake Chemical Corporation has signed an agreement to acquire German-based Vinnolit Holdings GmbH and its subsidiary companies from Advent International for €490 million. The transaction is expected to close in the third quarter of 2014. Advent International first invested in Vinnolit in July 2000.
Vinnolit is an integrated manufacturer of specialty polyvinyl chloride (“PVC”) resins. The company’s products are used for a 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 has six production facilities located in Germany and one 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. The company generated €917 million of revenue in 2013 and employs approximately 1,400 employees. Vinnolit’s headquarters are located northeast of Munich in Ismaning, Germany (www.vinnolit.de).
“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,” said Ranjan Sen, General Manager at Advent International in Frankfurt.
Westlake Chemical Corporation (NYSE: WLK) is an international manufacturer and supplier of petrochemicals, polymers and building products. The company’s range of products includes: ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC resin and PVC building products including pipe and specialty components, windows and fence. Westlake is based in Houston (www.westlake.com).
The acquisition price of €490 million will be financed using existing Westlake cash and credit facilities.
“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,” said 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.”
2014 PEPD • Private Equity’s Leading News Magazine • 5-28-14
