By Anthony Capkun
October 25, 2016 – Westlake Chemical Corp.—a manufacturer and supplier of petrochemicals, polymers and building products—has completed its acquisition of Axiall Corp., making it the new owner of Royal Building Products, which includes Royal Electrical Solutions (Royal Pipe).
The Electrical Solutions division offers PVC conduit fittings, ENT fittings and tubing, and enclosures for a variety of uses in residential, industrial, institutional and commercial construction.
Axiall was acquired for $33.00 per share in an all-cash transaction, representing an enterprise value of about $3.8 billion US, says the Westlake, including debt and certain other Axiall liabilities.
(Westlake initially disclosed its proposal to acquire all of Axiall’s outstanding shares back in January 2016, but its offer of $20.00 per share in cash and stock was summarily rejected by the Axiall board.)
The combined company will be the third-largest chlor-alkali producer and the second-largest polyvinyl chloride (PVC) producer in North America, says Westlake.
“We are pleased to complete this important strategic acquisition and to welcome Axiall and its talented team into the Westlake family of companies,” said Albert Chao, Westlake’s president & CEO. “This transaction aligns two remarkable companies, creates a company with greater financial and operational flexibility and accelerates our growth strategy.”
Westlake is headquartered in Houston, Texas, Westlake Chemical Corp.