Kraton Corp., which has sought to divest its Cariflex business unit for the past several months, has agreed to sell the unit to petrochemical manufacturer Daelim Industrial Co. Ltd. for $530 million.
In an Oct. 30 press release, Houston-based Kraton and Daelim said they expected the deal to close in the first quarter of 2020, subject to regulatory approvals and other closing conditions as set forth in the purchase agreement.
Kraton, a maker of styrenic block copolymers, specialty polymers and high-value performance products ,first indicated in March 2019 that it might sell Cariflex.
"We undertook the strategic review of the Cariflex business to explore the possibility of unlocking value for the benefit of our shareholders, as we felt the intrinsic value of the Cariflex business was not appropriately reflected in Kraton's overall evaluation," Kevin Gogarty, Kraton president and CEO, said in a news release.
Cariflex is a leader in the isoprene rubber latex market, according to Sang Woo Kim, Daelim vice chairman and CEO, how noted that the combination of businesses "will allow us to provide our customers with a wide range of innovative products while adding the ability to serve the medical and other high-end markets."
Cariflex contributed $50.5 million of pro forma Adjusted EBITDA to Kraton's bottom line for the fiscal year ended Dec. 31, 2018.