Westlake Chemical, the specialty chemicals producer, has purchased the business of Certain Teed, which includes PVC pipe, fittings, foundation and profiles. All the closing conditions of the acquisition have been complied with as well as a regulatory review completed.
In early 2013, Westlake had entered into an agreement to pay US$175 million in cash, consisting of US$22 million in working capital and closing adjustments, to purchase Certain Teed's businesses in pipe and foundation laying. Certain Teed is a subsidiary of Compaignie de Saint-Gobain, the French building materials firm.
The acquisition was done to enhance Westlake's North American pipe and building products unit, doing business as North American Pipe Corp. With the acquisition, it would be adding specialty product lines using new technology coming from Certain Teed.
According to Westlake Chemical President and CEO Albert Chao, "This acquisition enhances our North American Pipe and building products portfolio by adding specialty product lines and supporting technology that we do not currently have. These new products, technologies, and a broader market reach will increase our ability to service our customers' needs and further differentiate the value of our vinyls integration strategy."
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