West Lake Chemical has opened capital to a private equity firm headquartered in Los Angeles to make a binding offer to acquire Nakan, a global polymer manufacturing business. Reims, headquartered in France, is a manufacturer of PVC, TPE and TPO compounds for automotive, healthcare / medical, packaging, consumer goods and construction.
Nakan has eight branches in China, France, Germany, Italy, Japan, Mexico, Spain and Vietnam, a research center in France and an application laboratory in the United States.
Nakan has generated approximately $ 300 million in revenue in the last twelve months. According to Westlake's offer terms, Westlake will pay approximately $ 265 million in cash, but it will still adjust. The binding offer was made in order for Nakan to continue its obligation to negotiate with the French Engineering Commission before signing a negotiated, mutually binding purchase agreement.
"The combination of Nakan and Westlake's existing class businesses will show an excellent strategic fit. This will help us expand our polymer production business globally and add important professional products and technologies to our existing business portfolio. .Nakan is an impressive company, with outstanding technology, product quality and excellent operation to meet customer needs and enjoy an excellent reputation. Once they join the Westlake family company, we look forward to working with their excellent team . "
The agreement is expected to be completed in early 2019, but subject to regulatory approval and completion of the required employee consultation procedures and other customary closing conditions.
Recently Nakan is developing a rigid PVC for 3D printing filaments without any extrusion plasticizer. Nakan Germany's Restec and Fillamentum Industries jointly developed this grade of product. The formulation is particularly suitable for industrial 3D printing processes, and it has excellent chemical resistance, flame retardancy and high impact strength.