Readers last week were most interested in news from Kraton regarding its Cariflex sale (Daelim Industrial to Acquire Kraton’s Cariflex Business Unit): “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…’”
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Top 5 News that Sticks for November 3-9
- Daelim Industrial to Acquire Kraton’s Cariflex Business Unit
Emerald Kalama Chemical Opens New European Central Office in Rotterdam
#1 last week
Sika Achieves Record Sales in First Nine Months of 2019
#5 last week
- Huntsman Reports Rocky Results for 2019 Third Quarter
- 3M Sees Sales Decline 2% in 2019 Third Quarter
This weekly roundup highlights the adhesives, sealants, and coatings-related news stories that garnered the most attention during the previous week on our website, as well as our eNewsletters and social media platforms.