Westlake Doubles its Portfolio in High-Growth North American Building Products Market
October 01 2021 - 10:44AM
Business Wire
- Company completes acquisition of Boral Limited’s North American
building products businesses for $2.15 billion
- Adds leading brands in premium roofing; siding, trim and
shutters; decorative stone; and windows
- Additional product lines will broaden Westlake’s footprint into
the fast-growing housing and light commercial markets in North
America
- Combination brings opportunity to offer more sustainable
products to housing materials market
Westlake Chemical Corporation (NYSE: WLK) today announced that
it has completed the acquisition of Boral Limited’s North American
building products businesses in roofing; siding, trim and shutters;
decorative stone; and windows for $2.15 billion in an all-cash
transaction.
“This transaction effectively doubles the size of our portfolio
in the high-growth North American building products segment,” said
Westlake President and Chief Executive Officer Albert Chao. “The
North American building products segment, based on market analysis
for new construction and remodel and repair, is expected to grow by
approximately 15% during the next three years, and Boral’s
high-quality architectural solutions and premium products will help
us extend our leading position in the North America building
products segment. We look forward to welcoming the Boral employees
to the Westlake family and realizing the tremendous opportunities
to grow the combined businesses.”
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 $1 billion during the
fiscal year ended June 30, 2020.
“We believe that this acquisition makes our business much
stronger today,” continued Chao. “With this acquisition, we have
significantly increased scale, added product and geographical
diversity, improved our sustainable products positioning, and
enhanced our growth prospects. We expect the deal to be accretive
to earnings in the first full year of combined operations.”
The acquisition comes after Westlake recently closed on its
acquisitions of Dimex LLC, which processes recycled plastic
materials to manufacture home and lifestyle products, such as
landscape edging, home and office matting, and marine deck edging;
and of LASCO Fittings LLC, a leading designer, engineer and
manufacturer of injected-molded PVC fittings.
The acquisitions position Westlake at the forefront of the
burgeoning building products and construction markets, with durable
and sustainable materials and create opportunities for further
product innovations.
About Westlake
Westlake is a global manufacturer and supplier of materials and
innovative products that enhance life every day. Headquartered in
Houston, we provide the building blocks for vital solutions — from
building products and infrastructure materials, to packaging and
healthcare products, to automotive and consumer goods. For more
information, visit the company's website at www.westlake.com.
Forward-Looking Statements
The statements in this release that are not historical
statements, including statements regarding the expected benefits of
the transaction, including expected synergies, accretion and
growth, are forward-looking statements within the meaning of the
federal securities laws. These forward-looking statements are
subject to significant risks and uncertainties, many of which are
beyond Westlake’s control. Actual results could differ materially
based on risks and uncertainties described in Westlake’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2020,
which was filed with the Securities and Exchange Commission (“SEC”)
in February 2021, Quarterly Report on Form 10-Q for the quarter
ended March 31, 2021, which was filed with the SEC in May 2021,
Quarterly Report on Form 10-Q for the quarter ended June 30, 2021,
which was filed with the SEC in August 2021, recent Current Reports
on Form 8-K, and Westlake’s other SEC filings. These filings also
discuss some of the important risk factors and other factors
identified that may affect Westlake’s business, results of
operations and financial condition. Westlake undertakes no
obligation to revise or update publicly any forward-looking
statements for any reason.
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version on businesswire.com: https://www.businesswire.com/news/home/20211001005522/en/
Media Relations – L. Benjamin Ederington – 1-713-960-9111
Investor Relations – Steve Bender – 1-713-960-9111
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