M&As: Westlake Chemical acquires building construction firm for US$2.5 bn; Distrupol acquires Danish firm Lautrup Chemicals

US chemical firm Westlake Chemical Corporation has entered into a definitive agreement with Boral Industries Inc., a wholly owned subsidiary of Boral Limited, to acquire Boral’s North American building products businesses in roofing; siding, trim and shutters; decorative stone; and windows for US$2.15 billion in an all-cash transaction. The proposed transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2021, subject to the receipt of regulatory clearance as well as other customary closing conditions.

The combination of Westlake’s leading building products with Boral’s product lines creates a stronger business with significantly increased scale, greater product and geographical diversity, and enhanced growth prospects throughout the North American building products market. 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 US$35 million per year.

Boral’s North American building products businesses employ approximately 4,600 employees at 29 manufacturing sites in the US and Mexico. Boral’s North American building products businesses generated revenues in excess of US$1 billion during the fiscal year ended June 30, 2020.

"This transaction will bring well-established and high-quality architectural solutions and premium product brands in roofing; siding, trim and shutters; decorative stone; and windows to complement our existing businesses, including Royal Building Products’ siding, trim and molding, DaVinci composite roofing, NAPCO Pipe and Fittings, and specialty PVC compounding business," said Westlake President/CEO, Albert Chao. "The combination of Boral North America’s product lines with Westlake’s building products businesses will greatly expand our housing-related building products business and extend our presence in North America. We look forward to welcoming the Boral employees to the Westlake family and realiSing the tremendous opportunities to grow the combined businesses."

The proposed transaction is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the US Hart-Scott-Rodino Antitrust Improvements Act of 1976.

In other news, US-based distributor of thermoplastics and elastomers to the polymer processing industry Distrupol, which is an affiliate of GPD Companies, has acquired Lautrup Chemicals A/S. Terms of the transaction were not disclosed.

Founded in 1982 by CEO/President Hans Lautrup, Lautrup Chemicals is the leading distributor of polymers in Scandinavia. The company provides a broad portfolio of polymer products from premier suppliers to a diverse client base across the Nordic region as well as Eastern and Southern Europe. Headquartered in Copenhagen, Denmark, Lautrup Chemicals has a highly qualified team and network of strategically located distribution warehouses throughout the continent, designed to provide safe and efficient product delivery.

“Over nearly 40 years, Lautrup Chemicals has established an incredible reputation for providing exceptional service, an expansive product portfolio and consistent, on-time delivery to its extensive customer base,” said Richard Orme, Managing Director of Distrupol. “We’re truly excited to welcome Lautrup Chemicals’ experienced team and customer-oriented, solutions-based mindset to the Distrupol business. We look forward to expanding the range and reach of our product and service offerings to customers across Europe.”

“We are delighted to become part of the distinguished Distrupol organisation, whose values and core beliefs are consistent with ours here at Lautrup Chemicals. I am confident that our customers will benefit hugely from the expertise and reach of Distrupol,” said Hans Lautrup.

(PRA)

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