Korea’s DL Chemical enters €2bn agreement to acquire Kraton 

Houston, Texas – US-based speciality polymer manufacturer Kraton Corp. has entered into a definitive merger agreement with South Korea’s DL Chemical Co., a subsidiary of DL Holdings, formerly known as Daelim Industrial.

As part of the deal, LD Chemical will acquire 100% of Kraton in an all-cash transaction implying an enterprise value of approximately $2.5 billion (€2.1 billion), Kraton announced 27 Sept.

"Following an extensive review of a wide-range of strategic alternatives… Kraton's board has determined that the sale of Kraton to DL Chemical is in the best interest of Kraton stockholders,” said Kevin M. Fogarty, Kraton's president and CEO. 

The board, he said, believes that the transaction provides “immediate and certain value for Kraton stockholders”, representing a premium of 50% over Kraton's unaffected market valuation as of early July.

“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," Fogarty added.

The move follows Kraton’s divestment of its Cariflex polyisoprene products business to Daelim Industrial for $530 million in March 2020.

"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 acquiring of Kraton's speciality polymer and bio-based chemical business, he said, will provide DL Chemical customers with a wider range of products.