Westlake Chemical To Buy Hexion's Epoxy Business For About $1.2 Bln

(RTTNews) - Westlake Chemical Corporation (WLK) on Wednesday said it has agreed to acquire Hexion's epoxy business for approximately $1.2 billion.

Westlake believes that the deal, which is expected to close in the first half of 2022, helps it to expand the company's integrated business by adding a portfolio of coatings and composite products to its chloro-vinyls businesses.

Based in The Netherlands, Hexion's epoxy business, which is in the manufacture of specialty resins, coatings and composites for a variety of industries, had net sales of nearly $1.5 billion for the twelve months ended September 30, 2021.

"Light-weighting is a critical feature for the manufacture of structural components for automobiles and for renewable energy, particularly the composite blades used by wind turbines, and epoxies are key ingredients for these sustainable products," said Westlake President and Chief Executive Officer Albert Chao.

Westlake shares are up more than 1% in pre-market. It closed at $99.96, up $2.03 or 2.07% on Wednesday.