A consortium led by U.S. private equity firm KKR & Co signed an agreement to acquire Taipei-listed LCY Chemical Corp in a stock deal that values the firm at $1.56 billion, the companies said on Sunday.
KKR, leading a consortium of investors including LCY’s employees and family members of its founders, will pay T$56 ($1.83) per share, representing a 17.3 percent premium to LCY’s closing price on July 20.
Upon completion, KKR will hold a majority and controlling interest in LCY.
The investment, KKR’s first in Taiwan since 2007, will be made from its $9.3 billion Asian Fund III, raised in June 2016 and currently the biggest private equity fund for the region.
The private equity powerhouse invested in Taiwanese electronics component maker Yageo Corp (2327.TW) in 2007 and made a buyout offer for the company four years later, which was rejected by Taiwanese regulators.
Founded in 1965, LCY produces specialty chemicals with a concentration on thermoplastic elastomers and performance plastics used in a wide range of products.
LCY’s board has approved the deal and the chemicals maker will be delisted after the completion of the transaction, according to a statement.
Goldman Sachs (Asia) is KKR’s financial adviser, while Goldman Sachs Bank USA has agreed to underwrite and arrange debt financing to the consortium for the deal, the companies said.
By Kane Wu
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