SINGAPORE (ICIS)--Westlake Chemical has entered into a definitive agreement with Boral to acquire its North American building products businesses for $2.15bn in an all-cash transaction, the US firm said on Sunday.
Australia-based Boral is an international building products and construction materials group.
The deal has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of this year, Westlake said in a statement.
"Westlake expects the proposed transaction to be accretive to its earnings in the first full year of combined operations and expects cost synergies of approximately $35m per year," it said.
Boral’s North American building products businesses employ around 4,600 employees at 29 manufacturing sites in the US and Mexico.
Boral’s North American building products businesses generated revenues in excess of $1bn during the fiscal year ended 30 June 2020.