(RTTNews) - Kraton Corp. (KRA) said Wednesday that it has agreed to sell its Cariflex business unit to Korea-based Daelim Industrial Co., Ltd. for a purchase price of $530 million. The company expects the transaction to close in the first quarter of 2020.
Kraton noted that Cariflex contributed $50.5 million of pro forma Adjusted EBITDA for the fiscal year ended December 31, 2018.
"Cariflex is an attractive business with a robust growth profile and pro forma Adjusted EBITDA margins in excess of 30%. We undertook the strategic review of the Cariflex business to explore the possibility of unlocking value for the benefit of our shareholders, as we felt the intrinsic value of the Cariflex business was not appropriately reflected in Kraton's overall valuation," said Kevin Fogarty, Kraton's President and Chief Executive Officer.
Fogarty noted that the acquisition of Cariflex will provide Daelim with an excellent opportunity to strengthen its polymer presence globally.
"Cariflex is a global leader in isoprene rubber latex and this combination will allow us to provide our customers with a wider range of innovative products while adding the ability to serve the medical and other high-end markets," said Sang Woo Kim, Vice Chairman and Chief Executive Officer of Daelim.
Daelim Industrial is mainly engaged in the petrochemical and engineering & construction businesses, with $9.8 billion in sales as of fiscal year 2018.
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