Kraton Corp. recently announced that it has agreed to sell its Cariflex™ business unit to Daelim Industrial Co., Ltd. for a purchase price of $530 million. The transaction is expected to close in the first quarter of 2020, subject to customary regulatory approvals and other closing conditions as set forth in the purchase and sale agreement. Cariflex contributed $50.5 million of pro forma adjusted EBITDA for the fiscal year ended December 31, 2018.
“Cariflex is an attractive business with a robust growth profile and pro forma Adjusted EBITDA margins in excess of 30%,” said Kevin M. Fogarty, president and CEO of Kraton. “We undertook the strategic review of the Cariflex business to explore the possibility of unlocking value for the benefit of our shareholders, as we felt the intrinsic value of the Cariflex business was not appropriately reflected in Kraton’s overall valuation.
“We are excited to have found a strong strategic home for Cariflex in Daelim, a leading petrochemical and engineering & construction company based in Korea. The acquisition of Cariflex will provide Daelim with an excellent opportunity to strengthen its polymer presence globally. We believe that this transaction delivers significant value to Kraton shareholders. Moreover, we intend that sales proceeds will allow us to significantly strengthen our balance sheet and improve our leverage profile, positioning us for future growth in our core polymer and chemical businesses.
“I am grateful to the employees of Cariflex for their commitment in creating and growing the Cariflex business, and for their innovation efforts in developing and implementing the transformational direct-connect process technology in Paulinia, Brazil. We look forward to their continued success with Daelim as an owner focused on continued investment in the Cariflex franchise.”
According to Sang Woo Kim, vice chairman and CEO of Daelim, “Cariflex is a global leader in isoprene rubber latex and this combination will allow us to provide our customers with a wider range of innovative products while adding the ability to serve the medical and other high-end markets. We are delighted to welcome Cariflex employees to the team and will work together for a seamless transition and integration of the business. By supporting the combined capabilities, talent, and resources with continued investment to expand the business globally, we will further enhance value for our shareholders.”
For more information, visit www.kraton.com and www.daelim.co.kr.
Report Abusive Comment