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
Source: Reuters
We are closing the chapter of the Chemicals Import Export Headquarters, and opening a new chapter under the name of Qemetica – a chemical group driving many industries on all continents. Therefore, the change of name is also accompanied by the adoption of the key goals of the business strategy for the next 6 years. – says Kamil Majczak, President of the Management Board.
In its efforts to advance chemical recycling, Neste has successfully conducted its first processing trial run with a new challenging raw material, liquefied discarded tires. In the processing run, Neste produced high-quality raw material for new plastics and chemicals.
Sika is opening a state-of-the-art facility in Lima, Peru, to produce synthetic macro fibers, and expanding the rollout of a product range with great growth potential in Latin America. With this innovative technology, Sika is further strengthening its position as a leading supplier to the mining industry and a strong partner for infrastructure projects.