OpenGate Capital signs exclusivity agreement to sell NAKAN to Westlake Chemical
OpenGate Capital announced that it has signed an exclusivity agreement with Westlake Chemical Corporation pursuant to which Westlake has made a binding offer to acquire NAKAN, a global PVC compounding solutions business headquartered in Reims, France. The transaction is valued at $265M and is anticipated to be completed by early 2019. NAKAN 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 products are used in a wide-variety of applications by customers in the automotive, building and construction, and medical industries. 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 will permit NAKAN to comply 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.