Westlake Chemical completes acquisition of Axiall Corp

03 Sep '16

1 min read

At a cost of around $3.8 billion, which includes debt and certain other Axiall liabilities, Westlake Chemical Corporation said it has completed the acquisition of Axiall Corporation for $33.00 per share in an all-cash transaction. The acquisition makes Westlake the third largest North American chlor-alkali and the second-largest PVC producer.

According to Westlake, the transaction will be accretive to its earnings in the first year following the closure of the deal, and expects annualised cost synergies of around $100 million.

For the twelve month period ended June 30, 2016, revenue of the combined entity is $7.4 billion with an adjusted EBITDA of $1.4 billion.

“This transaction aligns two remarkable companies, creates a company with greater financial and operational flexibility and accelerates our growth strategy,” Westlake CEO Albert Chao said.

“We believe that we will be better able to serve our customers with a more diversified portfolio that should create significant value and growth opportunities for Westlake stockholders,” he added. (AR)

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