Kraton and LCY Pen Agreement for New SBC Company
Kraton Performance Polymers Inc. recently announced it has entered into a definitive agreement to combine with the styrenic block copolymer (SBC) operations of Taiwan-based LCY Chemical Corp. The transaction is expected to combine Kraton’s product portfolio with LCY’s SBC operations and its record of driving growth in China and broader Asia.
The combination agreement reportedly calls for LCY to contribute its SBC business in exchange for newly issued shares in the combined company, such that Kraton’s shareholders and LCY will each own 50% of the outstanding shares of the combined enterprise. The combined company will be incorporated in the UK, will be listed on the NYSE, and will be led by Kevin M. Fogarty, Kraton president and CEO, and a global management team with administrative headquarters located in Houston, Texas.
“This combination addresses the strategic objectives of both Kraton and LCY,” Fogarty said. “For Kraton, it represents a logical next step in our ongoing strategy to reposition our manufacturing assets, providing for significant improvements in overall cost structure, and furthering our investments in Asia, thereby increasing our participation in the fast-growing markets of China, and Asia-Pacific more generally.”
For more information, visit www.kraton.com.