Houston-based Westlake, which manufactures and supplies petrochemicals, will acquire Axiall for $33 per share in an all-cash transaction. The deal is valued at approximately $3.8 billion, including debt and other liabilities, the companies said in a joint statement. The deal was approved by both companies' boards, and is expected to close by the end of the fourth quarter of this year.
The combined company is expected to bring in revenue of $7.6 billion for the year, and will be the third largest chloralkali producer and the second-largest polyvinyl chloride, or PVC, producer in North America, the companies.
"We are pleased to have reached this agreement with Westlake, which provides our stockholders with immediate recognition of the long-term value of our company, underscoring our Board's commitment to maximizing stockholder value," Axiall CEO Timothy Mann said in a statement. "We look forward to working closely with the Westlake team to ensure a smooth transition and complete the transaction as expeditiously as possible."
The combination will complement geographic positions, expand manufacturing, and combine balance sheets to "capitalize on future investment opportunities," the companies said.