LCY gives termination notice to Kraton

RUBBER & PLASTICS NEWS

Published: August 14, 2014 11:31 am ET
Updated: August 14, 2014 11:34 am ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers

Kraton Performance Polymers Inc. said that LCY Chemical Corp. has sent it formal notification that it is terminating the deal that would have seen Houston-based Kraton merge with the styrenic block copolymer operations of LCY.

Now the two sides must determine whether Kraton owes LCY a $25 million break-up fee to withdraw from the deal. LCY said Aug. 8 it would demand the fee, based on terms of the agreement. Kraton, however, maintains it should not have to pay the fee because a July 31 explosion in a gas pipeline in Kaohsiung, Taiwan, that transports propylene gas to LCY qualifies as a “material adverse effect” on LCY under the combination agreement, originally announced at the end of January.

Kraton informed LCY on June 30 that it intended to withdraw its recommendation that shareholders approve the combination agreement unless the two parties agreed to revised terms. Kraton said the operating results for LCY’s SBC business had declined in this year’s first quarter and that an SEC filing discussing a decline in forecasted results led to a decline in Kraton’s stock price and negative reactions from stockholders.

Despite “numerous discussions” between the parties since June 30, Kraton said that LCY informed the Houston firm Aug. 4 that it would no longer negotiate and would not agree to any revision in terms from the original deal.


Comments

LCY gives termination notice to Kraton

RUBBER & PLASTICS NEWS

Published: August 14, 2014 11:31 am ET
Updated: August 14, 2014 11:34 am ET

Post Your Comments


Back to story


More stories

Image

Packaging leads the way for M&As

March 6, 2015 1:33 pm ET

Packaging has outperformed the field for mergers and acquisitions for an extended period of time, an Ernst & Young official said at the Plastics News ...    More

Image

Cardia closing new film plant in Brazil

March 6, 2015 10:05 am ET

Australia-based bioplastics and film company Cardia Bioplastics Ltd. will close its Brazil manufacturing plant and invest instead in its Asia-Pacific ...    More

China outlines materials growth, directions

March 6, 2015 9:58 am ET

Despite continuous capacity expansion including coal-based projects, China still imports more than half of its ethylene consumption and more than a...    More

Image

Arkema adds Bostik to high performance materials business unit

March 6, 2015 9:24 am ET

Arkema SA has finalized the acquisition of Bostik SA from Total SA, bringing what it says is the world's No. 3 adhesives provider into its portfolio.    More

Image

Huntsman closing four pigment plants

March 5, 2015 3:36 pm ET

Huntsman Corp. is closing four plants — three in the U.S. and one in Germany — that make pigments for plastics and other markets.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

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

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

More Events