DL Chemical completes acquisition of Kraton Corp. for USD2.5B
DL Chemical Co., Ltd. has completed its acquisition of Kraton Corporation, a leading global sustainable producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products, in an all-cash transaction valued at approximately USD2.5 billion.
Based in South Korea, DL Chemical 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 United States. DL Chemical is the world's largest producer of polybutene with a production capacity of 200 kilotons per annum. It is a subsidiary of DL Holdings Co., Ltd. (formerly Daelim Industrial Co., Ltd.), which is one of the largest chaebol companies in South Korea.
The merger enables Kraton to strengthen its global presence by leveraging DL Chemical's manufacturing capabilities and footprint in the Asian market, along with its financial strength, allowing Kraton to further invest in industry-leading sustainable innovation. The merger also accelerates both DL Chemical's and Kraton's vision of being a global leader of specialty chemicals.
The transaction, which was announced on September 27, 2021, and received Kraton stockholder approval on December 9, 2021, was completed on on March 15, 2022. As a result, Kraton is now a wholly owned subsidiary of DL Chemical.
Effective March 15, Marcello Boldrini and Dr. Holger Jung will lead Kraton as co-chief executive officers, overseeing Kraton's Chemical and Polymer segments, respectively.
Since 2011, Jung has served as Kraton's senior vice president and Polymers' Segment president. Through his experience and leadership, the Polymers business has experienced growth and expansion. Before Kraton, Jung held multiple leadership positions with Invista, a Koch Industries subsidiary, prior to serving as vice president of Invista's North American Polyester & Intermediates business. Jung holds a Ph.D. in polymer chemistry from the University of Marburg in Germany.
Appointed as Kraton's senior vice president and Chemical Segment president in April 2017, Boldrini has successfully led Kraton's Chemical segment businesses. In April 2021, he was also appointed to the role of chief sustainability officer. Before Kraton, Boldrini held senior-level positions at Houghton International, Hexion/Momentive, Ashland, Quaker Chemical, Unilever/Unichema, and internationally served on several joint venture boards. Boldrini holds an MS in Chemistry from the University of Milan, Italy, and an MBA from Bocconi University in Milan, Italy.
"Today marks an exciting new chapter for Kraton," said Boldrini. "We are thrilled to be part of the DL Chemical group and look forward to working with their talented team to advance our sustainable business even further."
"We are pleased to have completed this transaction and look forward to what the future holds for Kraton and DL Chemical," said Jung. "DL Chemical provides the financial strength and the growth-oriented focus that allows Kraton to further invest in innovation and compete more effectively in the global market."