Building products manufacturer Westlake Chemical (NYSE: WLK ) announced it entered into a definitive agreement with CertainTeed, a subsidiary of Compagnie de Saint-Gobain, to purchase its pipe and foundation business for $175 million, including $22 million of working capital. The acquisition includes the PVC pipe, fittings, profiles, and foundations business, and the associated operating facilities that have a production capacity of approximately 150 million pounds per year.
"The acquisition of CertainTeed's PFG business is an excellent strategic fit for Westlake," said Westlake president and CEO Albert Chao. "When completed, it will enhance our North American pipe and building products portfolio by adding specialty product lines and supporting technology that we do not currently have."
Westlake manufactures and supplies petrochemicals, polymers, and building products that include PVC resin and PVC building products such as PVC pipe, windows, and fencing. The acquisition, which is expected to close in the second quarter of 2013, gives Westlake a leading producer of PVC pipe and fittings for municipal, water well, mining, agriculture, and irrigation applications.