Global investment firm KKR will lead a consortium to acquire all of the issued and outstanding shares of LCY Chemical Corp. The KKR consortium includes participation by LCY’s current employees and certain members of the founding family. The transaction has been unanimously approved by the board of directors of LCY and represents a total market capitalisation of approximately TWD 47.8 billion (~ USD 1.56 billion). The transaction is expected to close in Q4 2018.
Following the share swap, KKR will hold a majority and controlling interest in LCY. LCY will maintain its corporate headquarters in Taipei, Taiwan, its existing global distribution and sales networks and its production plants in Taiwan, mainland China, and the USA. Founded in 1965, LCY produces speciality products with a concentration on thermoplastic elastomers (SEBS, SIS, SBS) and performance plastics.
KKR intends to work closely with LCY’ team to strengthen the company’s business platform by exploring expansion opportunities in new and existing international markets. TH Hong, Chairman of LCY, said, “The proposed transaction delivers meaningful and immediate value to our shareholders, while also providing greater access to capital, operational resources and the time horizon needed to execute a strategy to drive long-term, sustainable value creation. KKR is the ideal partner to help us build on our 50-year track record of producing high-quality chemical products for customers worldwide and take LCY to its next level of growth given KKR’s focus on responsible business and operational excellence. KKR’s decision to partner with us is a testament to the innovative and talented team we have built in Taiwan – and around the world – and we look forward to working with them to build an even stronger company.”