DL Chemical to buy Kraton in a deal valued at $2.5 billion

Sep. 27, 2021 8:13 AM ETKraton Corporation (KRA)By: SA News Team

Book about Merger And Acquisitions M&A on a desk.
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  • Kraton Corporation (NYSE:KRA) enters a merger agreement under which DL Chemical will acquire 100% of Kraton in an all-cash deal, implying an enterprise value of ~$2.5 billion.
  • Per the terms, Kraton stockholders will receive $46.50 in cash for each share of Kraton common stock.
  • The offer price implies a premium of ~12% to the closing price of KRA on Sept. 24.
  • "DL Chemical has been conducting the petrochemical business responsibly within the DL Group for 46 years. After acquiring Kraton's Cariflex business last year, we have successfully integrated that business within the DL Group," said Sang Woo Kim, Vice Chairman and Chief Executive Officer of DL Chemical.
  • The Merger Agreement was unanimously approved by Kraton's Board of Directors.
  • The acquisition is subject to certain customary closing conditions, including the receipt of stockholder and regulatory approvals, and is expected to close by the end of 1H22.
  • Shares of KRA +8% premarket.

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