Westlake Chemical Corporation has entered into a definitive agreement with CertainTeed Corporation, a subsidiary of the French public company, Compagnie de Saint-Gobain, to purchase its Pipe and Foundation Group (PFG), a leading producer of PVC pipe and fittings for municipal, water well, mining, agriculture and irrigation applications.
The sale is for a purchase price of $175 million in cash, including $22 million of working capital, with closing adjustments.
The PFG acquisition includes the PVC pipe, fittings, profiles and foundations business and associated operating facilities in Lodi, California and McPherson, Kansas with production capacity of approximately 150 million pounds per year. Westlake will also acquire technologies and intellectual properties for the production of a number of specialized products.
The PFG acquisition includes the PVC pipe, fittings, profiles and foundations business and associated operating facilities in Lodi, California and McPherson, Kansas with production capacity of approximately 150 million pounds per year. Westlake will also acquire technologies and intellectual properties for the production of a number of specialized products.
“The acquisition of CertainTeed’s PFG business is an excellent strategic fit for Westlake,” said Westlake’s President and CEO, Albert Chao. “When completed, it will enhance our North American Pipe and building products portfolio by adding specialty product lines and supporting technology that we do not currently have. These new products, technologies, and a broader market reach will increase our ability to service our customers’ needs and further differentiate the value of our vinyls integration strategy.”