DL Chemical Co., Ltd. a subsidiary of DL Holdings Co., Ltd. (formerly Daelim Industrial Co., Ltd.), will acquire 100 % of US company Kraton in an all-cash transaction implying an enterprise value of approximately USD 2.5 billion. Kraton stockholders will receive USD 46.50 in cash for each share. As part of the transaction DL Chemical has conveyed that they have fully committed financing. This was announced by the companies on 27 September 2021.
In March 2020 DL Chemical (at that time part of Daelim Industrial Co., Ltd) already acquired Kraton’s Cariflex (isoprene rubber latex and isoprene rubber) business for USD 530 million in cash. DL Chemical is based in Korea and has more than 46 years of operational experience. It was the first petrochemical firm in the country to commercialize metallocene polyethylene and polybutene, as well as the first to export polybutene technology to the US. The company is one of the world’s largest producers of polybutene with a production capacity of 200 000 t/y.
The Kraton deal will put DL Chemical a step closer to its goal to become one of the world’s top 20 chemicals companies. In June 2021 DL signed a deal with US company REXtac for the formation of a JV to construct and operate an Amorphous Poly Alpha Olefin (APAO) manufacturing plant located in Yeosu Industrial Complex, South Korea. Together with LyondellBasell DL Chemical runs PolyMirae (founded in 2000) a 50:50 JV for the production of polypropylene.