Westlake Chemical buying European specialty PVC maker Vinnolit

By Frank Esposito
Senior Staff Reporter

Published: May 28, 2014 10:34 am ET
Updated: May 28, 2014 10:39 am ET

Image By: Westlake Chemical Albert Chao

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers
Companies & Associations Westlake Polymers Corp.

Westlake Chemical Corp. has found a use for its growing pile of cash, acquiring German specialty PVC maker Vinnolit Holdings GmbH for 490 million euros (US$666.4 million).

Houston-based Westlake will finance the deal using existing cash and credit facilities, officials said in a May 28 news release. Westlake — a producer of polyethylene, PVC and related products — has benefited from increased U.S. natural gas production. The firm’s 2013 profit grew almost 60 percent to more than $610 million, playing a role in a 2-for-1 stock split on March 18.

Westlake is acquiring Ismaning, Germany-based Vinnolit from private equity firm Advent International of Boston. The deal includes five production plants in Germany (Gendorf, Burghausen, Cologne, Knapsack and Schkopau) and one in the United Kingdom (Hillhouse). These plants have total annual capacity of 1.7 billion pounds of PVC, 1.4 billion pounds of vinyl chloride monomer feedstock and 1 billion pounds of caustic soda.

The acquisition also includes an R&D center in Gendorf and an applications lab in Burghausen.

Vinnolit employs 1,400 and posted sales of 917 million euros (US$1.25 billion) in 2013. The firm’s products are used in a wide range of industrial and building product applications, including automotive sealants, pipe, rigid film, medical applications, flooring, wall coverings and window profiles.

The acquisition “is an excellent strategic fit for Westlake,” President and CEO Albert Chao said in the release. “It will allow us to expand our chlorovinyl business globally and adds important specialty PVC products and technology to our existing portfolio.”

Vinnolit managing director Josef Ertl said that the firm’s management board “has transformed Vinnolit into the leading specialty PVC manufacturer, and remain dedicated to further growing the company’s business.”

The acquisition would increase Westlake’s $3.8 billion annual sales total by about one-third. Initial Wall Street reaction to the deal was positive, sending Westlake’s per-share stock price up more than 3 percent to $79.30 in early trading May 28.


Comments

Westlake Chemical buying European specialty PVC maker Vinnolit

By Frank Esposito
Senior Staff Reporter

Published: May 28, 2014 10:34 am ET
Updated: May 28, 2014 10:39 am ET

Post Your Comments


Back to story


More stories

Image

Dow reaches agreement with Third Point

November 21, 2014 9:11 am ET

Dow Chemical Co. has reached an agreement with the investment firm that has been trying to force the company to sell off some assets.More

Image

Ineos making its UK shale play

November 21, 2014 9:29 am ET

Chemical giant Ineos Group AG is planning to be the biggest player in the United Kingdom's shale gas industry.    More

Image

Coveris changes culture, eyes IPO

November 20, 2014 1:40 pm ET

CEO Gary Masse has a simple message, and some new math, for everyone at Coveris Holdings Corp. Get on board or get out of the way.    More

Image

Total to buy majority stake in Polyblend

November 20, 2014 10:04 am ET

French oil and gas giant Total SA will buy a 68 percent stake in Germany's Polyblend GmbH, a subsidiary of Polymer-Chemie GmbH.    More

Image

Silica can replace plastic microbeads

November 19, 2014 6:00 am ET

As cosmetics and soap makers face pressure to remove plastic microbeads from their products, Evonik Industries touts its new silica-based microbeads a...    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events