POST Online Media Lite Edition


Westlake Chemical to acquire Axiall Corporation for $3.8 billion

Staff writer |
Westlake Chemical Corporation will acquire all of the outstanding shares of Axiall Corporation for $33 per share in an all-cash transaction.

Article continues below

This represents an enterprise value of approximately $3.8 billion, including debt and certain other Axiall liabilities. The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to be completed by the fourth quarter of 2016.

The combined company will be the third-largest chlor-alkali producer and the second-largest PVC producer in North America, with expected combined pro forma revenues of $7.6 billion and EBITDA of $1.5 billion for the last 12 months ended Q1 2016.

The combination creates a stronger company with significantly increased scale, greater product diversity and integration throughout the value-chain.

Westlake expects the transaction to be accretive to its earnings in the first year following close and expects annualized cost synergies of approximately $100 million based on its estimates.

What to read next

Axiall board rejects revised offer from Westlake
Westlake Chemical completes Axiall acquisition
Lotte Chemical offers to buy Axiall Corp