MOSCOW (MRC) -- US Kraton Corporation completed the sale of its Cariflex business to South Korean-based Daelim Industrial, said the company.
The sale was completed for USD530m in cash. The divestment, announced in October, follows a strategic review Kraton announced last February.
The company produces specialty polymers and biobased products derived from pine wood. It signed the agreement to sell its Cariflex business last October.
Kraton’s polymers are used in several applications such as adhesives, consumer and personal care products, coatings, medical, packaging, automotive, sealants and lubricants, paving and roofing applications.
Its pine-based specialty products are sold to the adhesives, roads, construction and tyre markets.
Kraton produces and sells a wide range of performance chemicals to markets such as fuel additives, oilfield chemicals, coatings, metalworking fluids and lubricants, inks, flavours, fragrances and mining.
Kraton president and CEO Kevin M Fogarty said: “We are pleased to announce that we have completed the sale of our Cariflex business to Daelim Industrial. We believe Daelim is well-positioned to invest in and grow the Cariflex franchise as it continues to expand its global business.
“We thank the Cariflex team for their significant contributions, not only for developing Cariflex, but for continuing to grow the business over the years, and we wish them continued success in the future.
“As previously communicated, we intend to use the net proceeds from the Cariflex sale principally for debt reduction. Following the closing of this important transaction, we remain committed to continuing to improve our overall capital structure, and this sale is an important step in that regard.”
JP Morgan Securities served as financial advisor to Kraton, while Baker McKenzie was the legal advisor.
UBS Securities served as financial advisor to Daelim and Paul Hastings served as legal advisor.
As MRC informed earlier, Kraton Performance Polymers, a leading global manufacturer of styrene block copolymers (SBC) and other complex polymer products, has announced that it has changed its name to Kraton Corporation.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
MRC