28 January 2014 13:49 [Source: ICIS news]
HOUSTON (ICIS)--Kraton Performance Polymers has agreed to merge with Taiwan’s LCY Chemical, the US-based engineered polymers and styrenic block copolymers (SBC) producer said on Tuesday.
The merger would create an "industry leader" in the SBC industry with at least $2bn/year in revenues, Kraton said.
Under the deal, LCY will contribute its SBC business in exchange for newly issued shares in the combined company, meaning that Kraton's shareholders and LCY will each own 50% of the outstanding shares of the combined entity. The deal is expected to be completed by the fourth quarter of 2014, pending regulatory approvals.
The new company will be incorporated in the UK and led by Kraton’s CEO Kevin Fogarty. Its administrative headquarters will be in Houston and its shares will be listed on the New York Stock Exchange.
For Kraton, the combination with LCY represented "a logical next step" in its strategy to reposition its manufacturing assets and increase its investments in Asia, Fogarty said.
"The combined company's capital structure, financial flexibility and cash-flow profile will serve as a strong foundation for continued investment in growth," he added.
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