HOUSTON — Kraton Corp., producer of specialty polymers and bio-based products derived from pine wood pulping co-products, has entered into a definitive merger agreement in which DL Chemical Co. Ltd., a subsidiary of DL Holdings Co. Ltd., will acquire 100% of Kraton in an all-cash transaction implying an enterprise value of approximately $2.5 billion. As part of the transaction DL Chemical has conveyed that it has fully committed financing.
“Following an extensive review of a wide-range of strategic alternatives focused on maximizing value for the benefit of our stockholders, Kraton’s Board has determined that the sale of Kraton to DL Chemical is in the best interest of Kraton stockholders. We believe the transaction provides immediate and certain value for Kraton stockholders, and represents an attractive premium of approximately 50% over Kraton’s unaffected market valuation as of early July,” said Kevin M. Fogarty, Kraton’s President and Chief Executive Officer. “Moreover, we believe DL Chemical has the industry presence and resources to continue to support the growth of Kraton’s business on a global scale”.