IHS Chemical Week


Chemical Finance Digest, Jan. 9-13

2:44 PM MST | January 16, 2012 | By VINCENT VALK

Topping the headlines last week, Westlake has made a $1.1 billion unsolicited bid to by rival vinyls maker Georgia Gulf. The bid values Georgia Gulf at $30/share, 22% higher than the company’s closing price on January 12. It would create the second-largest U.S. PVC producer, behind Shintech. Georgia Gulf shares closed at $33 on Friday, after news of the takeover offer.

In other M&A news, Toray has bought out Arkema’s stake in Société des Fibres de Carbone, a French carbon fibers maker. Arkema had previously held a 30% stake in the business, which was established in 1982. Meanwhile, Sigma-Aldrich has purchased BioReliance Holdings for $350 million for Avista Capital Partners, a private equity firm. The company provides biopharma testing services and had 2010 sales of about $110 million.

Valspar has issued $400 million in new debt, partially to refinance $200 million in debt that is due in May. The new debt has an interest rate about 1.4% lower than the old debt. It is rated ‘BBB’ by Standard & Poor’s, and ‘Baa2’ by Moody’s.

The week ahead will see the release of December’s U.S. industrial production figures on Wednesday, and earnings releases for H.B. Fuller on Wednesday afternoon and PPG on Thursday morning. Consensus for Fuller’s earnings is 59 cts/share, while PPG’s consensus estimate stands at $1.27/share. Industrial production consensus is for 0.5% growth.

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