US-based Westlake Chemical Corporation has signed a definitive agreement to acquire German-based Vinnolit Holdings and its subsidiary companies from Advent International, a private equity firm. Vinnolit is an integrated global leader in speciality PVC resins. The acquisition price of EUR490 million will be financed using existing Westlake cash and credit facilities. The transaction is expected to close in the third quarter of 2014, subject to standard closing conditions, including regulatory review.

Vinnolit has six production facilities located in Gendorf, Burghausen, Cologne, Knapsack and Schkopau in Germany and Hillhouse in the UK. These operations have a combined annual capacity of 780,000 tonnes of PVC, including speciality paste and suspension grades, 665,000 tonnes of vinyl chloride monomer (VCM) and 475,000 tonnes of membrane grade caustic soda. Vinnolit has a world class research and development facility in Gendorf and applications laboratory in Burghausen. Vinnolit's products are suitable for a wide range of industrial and building product applications including automotive sealants, cable sheathing, flooring, medical applications, pipes, rigid film, technical coatings, wall covering and window profiles.

Vinnolit's headquarters are located in Ismaning, Germany, outside of Munich. The company generated EUR917 million of revenue in 2013 and employs approximately 1,400 employees.

"The acquisition of Vinnolit is an excellent strategic fit for Westlake. It will allow us to expand our chlorvinyl business globally and adds important speciality PVC products and technology to our existing portfolio," says Albert Chao, Westlake's President/CEO. "

Westlake Chemical Corporation is an international 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 resin and PVC building products including pipe and specialty components, windows and fence.

It recently announced it is filing for an IPO for Westlake Chemical Partners, a new subsidiary that has plans to operate, acquire and develop ethylene production facilities. http://www.plasticsandrubberasia.com/may2014/company4.html