Westlake Chemical Closes Purchase of CertainTeed's PVC Pipe, Fittings and Foundations Business
HOUSTON, May 1, 2013 /PRNewswire/ -- Westlake Chemical Corporation (NYSE: WLK) announced today that all closing conditions, including regulatory review, have been met and it has closed the previously announced acquisition of CertainTeed Corporation's Pipe and Foundation Group (PFG) business effective today. The PFG acquisition includes the PVC pipe, fittings, profiles and foundation business and associated facilities in Lodi, California and McPherson, Kansas with production capacity of approximately 150 million pounds per year. Westlake also has acquired technologies and intellectual properties for the production of a number of specialized products, including Certa-Lok® restrained joint pipe and Yelomine™ branded products for a variety of end market applications. The transaction's cash purchase price was $175 million, including $22 million of working capital, subject to final closing adjustments. The newly acquired business will operate under the name of North American Specialty Products LLC and will provide specialty PVC pipe, fittings and foundations to the building products, agricultural, mining, municipal and other industrial markets.
Albert Chao, President and CEO of Westlake Chemical Corporation stated, "We are pleased to have closed this important strategic acquisition and to welcome the former CertainTeed PFG business employees to the Westlake and North American Pipe team. This acquisition enhances our North American Pipe and building products portfolio by adding specialty product lines and supporting technology that we do not currently have. These new products, technologies, and a broader market reach will increase our ability to service our customers' needs and further differentiate the value of our vinyls integration strategy."
Westlake Chemical Corporation (WLK)
Westlake Chemical Corporation is a 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, caustic, VCM, PVC and PVC pipe, windows and fence. For more information, visit the company's Web site at http://www.westlake.com.
The statements in this release relating to this acquisition, as well as any other matters that are not historical facts, are forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially. For more detailed information about factors that could cause actual results to differ materially, please refer to Westlake's Annual Report on Form 10-K for the year ended December 31, 2012, which was filed in February 2013.
SOURCE Westlake Chemical Corporation