Westlake Chemical announces offer to acquire NAKAN for $265M in cash
Westlake Chemical Corporation announced that it has issued an exclusive, binding offer to acquire NAKAN, a global compounding solutions business, from Los Angeles-based private equity firm, OpenGate Capital. NAKAN, headquartered in Reims, France, has eight production facilities, located in China, France, Germany, Italy, Japan, Mexico, Spain and Vietnam, as well as a world-class research facility in France and application laboratory in the United States. NAKAN's products are used in a wide-variety of applications, including in the automotive, building and construction, and medical industries. NAKAN generated approximately $300M of revenue in the most recent twelve-month period. Under the terms of the offer, which is subject to exclusivity protection, Westlake will pay approximately $265M in cash, subject to adjustment. The binding offer was made in order to permit NAKAN to proceed with its consultation obligations with French works councils prior to entering into a negotiated, mutually binding purchase agreement. The transaction is expected to close by early 2019, subject to receipt of regulatory approvals, completion of required employee consultation procedures and other customary closing conditions.