Korea’s DL Chemicals Inks Acquisition of Kraton

Oleochem Analytics — Kraton, a producer of specialty polymers and bio-based products derived from pine wood pulping co-products, announced it has been acquired by DL Chemical, Kraton said in a press release on September 27.

Korea-based DL Chemical, a subsidiary of DL Holdings, will acquire 100% of Kraton in an all-cash transaction implying an enterprise value of approximately $2.5 billion.

“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,” said Kevin M. Fogarty, Kraton’s President and Chief Executive Officer. “We believe the transaction provides immediate and certain value for Kraton stockholders, (…) and we believe DL Chemical has the industry presence and resources to continue to support the growth of Kraton’s business on a global scale”.

“DL Chemical has been conducting the petrochemical business responsibly within the DL Group for 46 years,” said Sang Woo Kim, Vice Chairman and Chief Executive Officer of DL Chemical. “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 Merger Agreement was unanimously approved by Kraton’s Board of Directors, which has recommended that Kraton stockholders vote in favor of the transaction. The acquisition is subject to certain customary closing conditions, including the receipt of stockholder and regulatory approvals, and is expected to close during the first half of 2022.

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