OpenGate Capital, a global private equity firm, announced today that it has signed an exclusivity agreement with Westlake Chemical Corporation (NYSE: WLK), pursuant to which Westlake has made a binding offer to acquire NAKAN, a global PVC compounding solutions business headquartered in Reims, France. The transaction is valued at $265 million and is anticipated to be completed by early 2019.
NAKAN has eight production facilities located in China, France, Germany, Italy, Japan, Mexico, Spain and Vietnam, as well as a world-class research facility in France and application laboratory in the United States. NAKAN products are used in a wide-variety of applications by customers in the automotive, building and construction, and medical industries.
OpenGate Capital acquired NAKAN in 2015, through the acquisition of Ivy Group, during the firms pre-fund, legacy investment period. Ivy Group, formerly known as Kem One Innovative Vinyls, was acquired through a French administration process that originated with a complex acquisition of Kem One SAS in 2014, a fully integrated upstream producer of PVC resins.
Under the terms of the offer, which is subject to exclusivity protection, Westlake will pay approximately $265 million in cash, subject to adjustment. The binding offer will permit NAKAN to comply with its consultation obligations with French works councils prior to entering into a negotiated, mutually binding purchase agreement.
Andrew Nikou, OpenGate Capitals founder and CEO stated, OpenGate Capitals acquisition of NAKAN in 2015 marked an important point in our firms growth as it strengthened our position as a lower middle market firm specializing in operationally complex, often cross-border transactions. I am so proud of the work that has been accomplished and congratulate the NAKAN and OpenGate teams on their work that has resulted in the signing of this important agreement.
OpenGate Capitals Partner overseeing the negotiations, Sebastien Kiekert Le Moult stated, The transformation of NAKAN since acquisition is a proud achievement in the history of OpenGate Capital and we are very pleased with the level of growth achieved by the business throughout our period of ownership. We look forward to working with Westlake as we complete the employee consultation process.
The transaction is expected to close by early 2019, subject to receipt of regulatory approvals, completion of required employee consultation procedures and other customary closing conditions.
About OpenGate Capital
OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses to create new value through operational improvements, innovation and growth. Established in 2005, OpenGate Capital is headquartered in Los Angeles, California with a European office in Paris, France. OpenGates professionals possess the critical skills needed to acquire, transition, operate, build and scale successful businesses. To date, OpenGate Capital, through its legacy and fund investments, has executed more than 30 acquisitions including corporate carve-outs, management buy-outs, special situations and transactions with private sellers across North America and Europe. To learn more about OpenGate, please visit www.opengatecapital.com.