MOSCOW (MRC) -- Westlake Chemical Corporation has announced that it has entered into a definitive agreement with Boral Industries, a wholly owned subsidiary of Boral Limited, under which Westlake will acquire Boral’s North American building products businesses in roofing; siding, trim and shutters; decorative stone; and windows for USD2.15 billion in an all-cash transaction, according to Indian Chemical News.
The proposed transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2021, subject to the receipt of regulatory clearance as well as other customary closing conditions.
The combination of Westlake’s leading building products with Boral’s product lines creates a stronger business with significantly increased scale, greater product and geographical diversity, and enhanced growth prospects throughout the North American building products market. Westlake expects the proposed transaction to be accretive to its earnings in the first full year of combined operations and expects cost synergies of approximately USD35 million per year.
Boral’s North American building products businesses employ approximately 4,600 employees at 29 manufacturing sites in the United States and Mexico. Boral’s North American building products businesses generated revenues in excess of USD1 billion during the fiscal year ended June 30, 2020.
Westlake will purchase Boral’s building products businesses for USD2.15 billion in cash. The purchase price is subject to customary adjustments, including working capital adjustments.
As MRC reported earlier, Westlake Chemical, US petrochemical major, has lifted its force majeure (FM) on US polyvinyl chloride (PVC) and upstream vinyl chloride monomer (VCM), the company announced in a customer letter dated May 17. The letter said the company was "formally lifting the systemwide force majeure condition for PVC and VCM manufactured and shipped from its North American operations that was originally declared on Feb. 19" as a result of mid-February's deep freeze that "resulted in a shutdown/curtailment of our plant operations." The winter storm brought sustained subfreezing temperatures to the US Gulf Coast and much of the US, forcing widespread petrochemical shutdowns that included at least 57% of US PVC capacity.
According to MRC's ScanPlast report, Russia's overall PVC production reached 346,100 tonnes in the first four months of 2021, down 1% year on year. All producers decreased production volumes over the reported period, with the exception of the Bashkir Soda Company.
Westlake Chemical Corporation is an international manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film.