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Westlake Chemical to buy PVC producer Vinnolit

10:08 AM MDT | May 30, 2014

Chao: Deal enables global expansion, adds specialties.

Westlake Chemical says it has signed a definitive agreement to acquire Vinnolit Holdings (Ismaning, Germany) and its subsidiary companies from Advent International, a private equity firm. Vinnolit is an integrated leader in the specialty polyvinyl chloride (PVC) market. The acquisition price of €490 million ($666 million) will be financed using existing Westlake cash and credit facilities. The transaction is expected to close in the third quarter of 2014, subject to standard closing conditions, including regulatory review.

Vinnolit has six production facilities. They are at Gendorf, Burghausen, Cologne, Knapsack, and Schkopau, Germany; and Hillhouse, UK. These operations have combined capacities for 780,000 m.t./year of PVC, including specialty paste and suspension grades; 665,000 m.t./year of vinyl chloride monomer; and 475,000 m.t./year of membrane-grade caustic soda. Vinnolit has an R&D facility at Gendorf and an applications laboratory at Burghausen. The company generated €917 million of revenue in 2013 and has approximately 1,400 employees.

Buying Vinnolit provides Westlake with an entry into Europe’s chlorvinyls industry. “The acquisition of Vinnolit is an excellent strategic fit for Westlake. It will allow us to expand our chlorvinyl business globally and adds important specialty PVC products and technology to our existing portfolio,” says Albert Chao, Westlake president and CEO. Westlake’s existing vinyls sites are at Calvert City, KY; Geismar, LA; and Suzhou, China.

“We have transformed Vinnolit into the leading specialty PVC manufacturer and remain dedicated to further growing the company’s business,” says Josef Ertl, managing director of Vinnolit. “We thank Advent for their support and strategic advice in developing Vinnolit and facilitating its successful transformation. We, as a management team, look forward to beginning a new chapter in our company’s history and continuing our successful growth path together with Westlake.”













 
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