MOSCOW (MRC) -- Kraton Polymers LLC announced that it has completed the previously announced purchase of all of the outstanding shares of capital stock of Arizona Chemical Holdings Corporation, which is one of the largest global providers of pine-based specialty chemicals, as per GV.
"We are pleased to announce that we have completed the acquisition of Arizona Chemical Holdings Corporation. Through the combination of Kraton and Arizona Chemical, we create a global leader in specialty materials technology, manufacturing, and geographical presence, providing value-added products and innovations serving a diversified range of end markets through a broad portfolio of highly-engineered polymers and specialty chemicals. The scale, complementary market positions, attractive margin profile and expected strong free cash flow generation capability of the combined company will serve as a strong foundation for future growth," said Kevin M. Fogarty, Kraton's President and CEO. "We now turn our focus to the implementation of our integration plan and the anticipated realization of USD 65 million of identified transaction synergies. To help ensure a seamless transition, both Kees Verhaar, Arizona's former President and Chief Executive Officer, and Frederic Jung, Arizona's former Vice President and Chief Financial Officer have agreed to serve in an advisory capacity to Kraton after closing."
The USD 1,370 million cash purchase price for the acquisition, which is subject to adjustment for cash, indebtedness, working capital, and other items, as well as the previously announced cash tender offer and redemption of all of Kraton's outstanding 6.75 % Senior Notes due 2019.
As MRC reported earlier, expanding on its global footprint and expertise in thermoplastic elastomer (TPE) innovation and design, PolyOne Corporation has recently announced it has acquired certain technologies and assets from Kraton Performance Polymers, Inc. The two companies also entered into a supply agreement, whereby Kraton will provide PolyOne certain raw materials used in production for the acquired business. The end markets utilizing the acquired technologies span new and fast growing applications in adhesive and removable protective films, as well as existing applications served by PolyOne, such as packaging, medical devices and personal care products. The purchase price of USD72 million represents a multiple of 9x EBITDA.
MRC