Westlake to Acquire Hexion’s Global Epoxy Business
November 24 2021 - 6:45AM
Business Wire
Leading global supplier of coatings and
composites used in wind turbine blades and automotive structural
components to expand Westlake’s chemicals portfolio
Westlake Chemical Corporation (NYSE: WLK), today announced that
it has entered into a definitive agreement with Hexion Inc. to
acquire Hexion’s global epoxy business for approximately $1.2
billion. Based in Rotterdam, The Netherlands, Hexion’s epoxy
business is an industry leader in the manufacture and development
of specialty resins, coatings and composites for a variety of
industries, including high-growth and sustainability-oriented
end-uses such as wind turbine blades and light-weight automotive
structural components. In the twelve months ended September 30,
2021, Hexion’s epoxy business had net sales of approximately $1.5
billion.
With this transaction, which is anticipated to be completed in
the first half of 2022 following customary closing conditions,
Westlake will significantly expand its integrated business by
adding a downstream portfolio of coatings and composite products to
its leading chloro-vinyls businesses.
“Light-weighting is a critical feature for the manufacture of
structural components for automobiles and for renewable energy,
particularly the composite blades used by wind turbines, and
epoxies are key ingredients for these sustainable products,” said
Westlake President and Chief Executive Officer Albert Chao. “The
industries served by Hexion Epoxy are very attractive to Westlake
and the business is expected to be a synergistic addition to
Westlake’s existing businesses. We look forward to welcoming the
Hexion epoxy employees to the Westlake family and realizing the
tremendous opportunities to grow the combined businesses.”
Hexion Epoxy is a global leading producer of epoxy resins,
modifiers and curing agents for high-performance materials,
coatings and composites. The fully-integrated business includes
upstream base epoxy resins and intermediates delivered as liquid or
solid epoxy resins, as well downstream specialty epoxy resins used
in coatings and composites. Hexion Epoxy operates globally on three
continents with eight manufacturing facilities and five research
and development labs located in Asia, Europe and the United States,
as well as tolling sites in Asia.
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 web site at www.westlake.com.
Forward-Looking Statements
The statements in this release that are not historical
statements, including statements regarding the expected timing of
closing, whether required regulatory approval will be obtained, and
potential benefits of the transaction are forward-looking
statements within the meaning of the U.S. 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 factors including, but
not limited to: the timing to consummate the proposed transaction;
the conditions to closing of the proposed transaction may not be
satisfied or the closing of the proposed transaction otherwise may
not occur; the risk that regulatory approval is not obtained or is
obtained subject to conditions that are not anticipated; the
diversion of management time on transaction-related issues; and
other 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, Westlake’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2021, which was filed with the SEC in
November 2021, Westlake’s recent Current Reports on Form 8-K, and
Westlake’s other SEC filings. These filings also discuss some of
the important risk factors 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/20211124005850/en/
Media Relations – L. Benjamin Ederington – 1-713-585-2900
Investor Relations – Steve Bender – 1-713-585-2900
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