DL Chemical to acquire specialty polymers producer Kraton for $2.5bn

Kraton Corporation, a US-based manufacturer of specialty polymers and bio-based products derived from pine wood pulping co-products, has agreed to be acquired by DL Chemical Co. in an all-cash deal worth around $2.5 billion.

DL Chemical is a subsidiary of DL Holdings (formerly Daelim Industrial). It is a Belgium-based petrochemical company.

Kevin M. Fogarty — Kraton Corporation President and CEO said: “Following an extensive review of a wide-range of strategic alternatives focused on maximizing value for the benefit of our stockholders, Kraton’s Board has determined that the sale of Kraton to DL Chemical is in the best interest of Kraton stockholders.

“We believe the transaction provides immediate and certain value for Kraton stockholders, and represents an attractive premium of approximately 50% over Kraton’s unaffected market valuation as of early July.

“Moreover, we believe DL Chemical has the industry presence and resources to continue to support the growth of Kraton’s business on a global scale.”

As per the terms of the deal, shareholders of the publicly-listed Kraton Corporation will be paid $46.5 in cash for each of their shares.

The merger deal was approved unanimously by Kraton Corporation’s board of directors, which has recommended the company’s shareholders to vote in its favor.

Sang Woo Kim — DL Chemical Vice Chairman and CEO said: “DL Chemical has been conducting the petrochemical business responsibly within the DL Group for 46 years. After acquiring Kraton’s Cariflex business last year, we have successfully integrated that business within the DL Group.

“We also have been highly interested in Kraton’s specialty polymer and bio-based chemical business, and this combination will allow us to provide our customers with a wider range of innovative products, while adding the ability to serve a diverse range of end markets in over 70 countries worldwide.”

The deal, which is subject to stockholder and regulatory approvals, and certain other customary closing conditions, is likely to close by the end of H1 2022.