HOUSTON, Dec. 1 /PRNewswire-FirstCall/ -- Westlake Chemical Corporation (NYSE: WLK) announced today that all closing conditions, including regulatory review, have been met and it has closed the previously announced acquisition of Eastman Chemical Company's (NYSE: EMN) polyethylene business effective yesterday. The purchase includes Eastman's polyethylene and Epolene polymer business lines headquartered in Longview, Texas, related assets and a 200-mile ethylene pipeline. The transaction's $255 million purchase price is subject to a working-capital adjustment and will be funded from current cash balances. The acquired business and assets generated approximately $680 million in revenue during 2005.
With this acquisition Westlake's total polyethylene capacity is now in excess of 2,500 million pounds per year, including 700 million pounds per year of low density polyethylene (LDPE) and 425 million pounds per year of linear low density polyethylene (LLDPE) acquired in this purchase. Westlake also acquired technology for the production of specialty polyolefin polymers including: acrylate co-polymers; and Epolene(R) polymers for the coatings, adhesives and other consumer products markets, as well as Energx technology for linear low density polyethylenes designed to provide enhanced strength and performance properties.
Albert Chao, President and CEO of Westlake Chemical Corporation, stated, "We are pleased to have closed this important strategic acquisition and welcome the former Eastman Chemical polyethylene business employees to the Westlake team. We believe this transaction will further strengthen our position in the growing North American polyethylene market, and increase our ability to service our customers through an improved overall product mix and new product technology and manufacturing capability at multiple sites where we can continue to enhance our ethylene integration strategy."
Westlake Chemical Corporation (WLK)
Westlake Chemical Corporation is a manufacturer and supplier of petrochemicals, polymers and fabricated products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC and PVC pipe, windows and fence. For more information, visit the company's Web site at http://www.westlakechemical.com .
The statements in this release relating to this acquisition, as well as any other matters that are not historical facts, are forward-looking statements that are subject to risks and uncertainties. Actual results could differ materially. For more detailed information about factors that could cause actual results to differ materially, please refer to Westlake's Annual Report on Form 10-K for the year ended December 31, 2005, which was filed in February 2006.
CONTACT: David R. Hansen, Media Relations, or Steven Bender, Investor Relations, both of Westlake Chemical Corporation, +1-713-960-9111