Westlake Chemical Corporation (NYSE: WLK) has inked an agreement to buy Boral Industries Inc. Boral Industries Inc is the fully-owned subsidiary of Boral Limited. Westlake will spend $2.15 billion for the acquisition of Westlake. The North American building products businesses of Boral hire nearly 4,600 employees at 29 production sites in the US and Mexico.
The Boral’s North American business of building products businesses created revenues in excess of $1 billion during the fiscal year completed June 30, 2020. The merger of Westlake’s prominent building products with Boral’s product lines generates a stronger business with substantially augmented scale, larger product and geographical variety, and improved opportunities for growth all over the North American building products market.
Furthermore, Westlake anticipates the suggested deal to be incremental to its earnings in the first full year of merged operations and anticipates cost synergies of nearly $35 million per year. Additionally, it has been disclosed that the Board of Directors of both the firms have unanimously authorized the deal. The deal is anticipated to end in the second half of 2021. The execution of deal dependent on receipt of regulatory authorization as well as other traditional execution under the circumstances.
Westlake will buy Boral’s building products businesses for $2.15 billion in cash. The buying price is dependent on customary adjustments, comprising working capital adjustments. The suggested deal is dependent on customary execution conditions, including expiry or termination of the relevant waiting period under the U.S. Hart-Scott-Rodino Antitrust Improvements Act of 1976.