Issue Date: February 3, 2014
Kraton To Merge With Unit Of Taiwan’s LCY
Houston-based Kraton Performance Polymers is merging with the styrenic block copolymers business of LCY Chemical, of Taiwan. SBCs are elastomeric materials that are either used on their own or are blended with other thermoplastics to impart properties such as impact resistance. Kraton, with $1.4 billion in sales for 2012, calls itself a leading producer of SBCs. LCY is the third-largest maker with $619 million in revenues. Kraton and LCY shareholders will each own 50% of the combined company, which will continue to be known as Kraton and will trade on the New York Stock Exchange. Kevin M. Fogarty, Kraton’s current CEO, will lead the combined company. Kraton says LCY’s SBC business has been growing at twice the rate of the rest of the SBC industry. The acquisition, it says, will boost its presence in Asia with efficient, low-cost capacity.
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