Axiall to sell two business units; to focus on PVC

US-based integrated chemicals and building products company Axiall Corporation is to sell its window and door profiles business, a component of Royal Building Products, to OpenGate Capital. The transaction is subject to regulatory approval and customary closing conditions. The sale is expected to close on 31 March 2016.

The Axiall compounding facility located in Concord, Ontario, is included in the window and door profiles transaction. It is a primary supplier to the window and door profiles business. As a North American market leader in innovation of vinyl profiles extrusion, the business provides quality custom profiles systems and platform products to meet the needs of window manufacturers across North America. The business works closely with customers to design products that meet the needs of their markets.

“As we refine our portfolio, we are pleased to have reached an agreement to sell our window and door profiles business to OpenGate Capital,” said Axiall President/CEO Tim Mann. “This is our fourth divestiture of non-core assets since April 2015, which allows us to better focus on our core chlorovinyls and derivatives. In particular, selling this business leaves Royal Building Products with the solid core product lines that generate better EBITDA margins, namely our siding, trim, moulding, fittings and pipe businesses.”

OpenGate Capital is a global private equity firm specialising in the acquisition and operation of businesses seeking revitalization through growth and operational improvements. Established in 2005, OpenGate Capital is headquartered in California and maintains offices in New York, Paris, France and São Paulo, Brazil. It owns three plastics businesses: Kem One SAS in France, profile extruder Profialis in France, and compounder Benvic.

Axiall was recently in the news when it rejected a takeover bid of US$2.9 billion from compatriot Westlake Chemical http://www.plasticsandrubberasia.com/jan2016/company15.html

Westlake interjected by nominating directors to the Axiall board, but Axiall officials likened the move to “a clear attempt to force a sale of Axiall to Westlake at a price that significantly undervalues Axiall’s assets and its long-term prospects,” it said in a press statement.