South Korean company buys $ 1.6 billion stake in Kraton Corp. | News, Sports, Jobs


The shareholders of Kraton Corp. approved the acquisition plans by DL Chemical Co. Ltd. (Photo by Michele Newbanks)

From staff reports

BELPRE – The shareholders of Kraton Corp. recently approved the proposed acquisition of the company by DL Chemical Co. Ltd.

According to a Pulse News press release, DL Chemical Co., the world’s largest polybutene producer and a subsidiary of South Korea’s DL Holdings Co., will acquire a full stake in US chemical company Kraton Corp. for $ 1.6 billion, a deal that will cement the Korean chemical company’s leadership position in the global petrochemical industry.

Representatives of DL Chemical said its board of directors has decided to buy a 100% stake in Kraton for $ 1.6 billion in an all-cash transaction. Under the terms, Kraton shareholders will receive $ 46.5 in cash for each Kraton common share they own. The Korean company will pay for the acquisition with its own cash and loans from financial institutions with the aim of finalizing the acquisition in the first half of next year.

In a US Securities and Exchange Commission filing, it was noted that if the merger goes through, Kraton will become an indirect, wholly-owned subsidiary of DL Chemical Co. Ltd.

“We are delighted that our shareholders voted overwhelmingly in favor of the merger with DL Chemical”, Kraton President and CEO Kevin M. Fogarty said in a press release. “We believe that the transaction provides significant value to Kraton shareholders, and that ownership of Kraton by DL Chemical will expand Kraton’s global reach and provide a broad platform for further investment and expansion of Kraton’s offering. Kraton products for the benefit of all of Kraton. stakeholders. “

In the polymer business, Kraton is a leading supplier of styrene block copolymers in the United States and Europe. SBC is an advanced technology material vital for the production of sanitary adhesives, medical equipment material, vehicle interior material and fifth generation mobile communication cable. The SBC produced by Kraton is high quality and value added among synthetic rubbers, DL Chemical said.

Kraton is also a large biochemical company that manufactures chemicals with refined by-products from the pine pulp production process. Its annual biochemical production capacity is 700,000 tonnes. The materials include environmentally friendly fuel, highly functional tires and green adhesives.

“We have been very interested in Kraton’s specialty polymers and bio-based chemicals business, and this combination will allow us to provide our customers with a broader range of innovative products, while adding the ability to serve a broad spectrum of end markets in more than 70 countries around the world ”, Kim Sang-woo, vice president and general manager of DL Chemical said in a statement.

The Korean company plans to actively locate key materials based on more than 800 patents owned by Kraton.

It has not been announced how the acquisition will affect the Belpre plant. Representatives for the Belpre plant declined to comment, referring all calls to Gene Shiels, director of investor relations, and Kristin Boyd, director of communications.

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