ATLANTA--Axiall Corporation (NYSE: AXLL), a leading integrated chemicals and building products company, has signed an agreement to sell certain assets of its compound additives business, known as Solucor, and its manufacturing facility located in Bradford, Ontario, to Galata Chemicals of Southbury, Conn. The transaction is expected to become effective at the end of day on Feb. 29, 2016. Terms of the transaction were not disclosed.
The Bradford facility, which includes approximately 60 employees who will transfer with the sale to Galata, manufactures high-quality additives for rigid PVC applications, focusing on a broad mix of process aids and impact modifiers, among other products. Solucor additives have a solid track record of successful performance in their targeted applications dating to their inception in 1994.
“As we refine our portfolio, we are pleased to have reached an agreement to sell our Solucor business to Galata Chemicals,” said Axiall President and CEO Tim Mann. “This is our third divestiture of non-core assets since April 2015, which allows us to better focus on our core chloro-vinyls and derivatives businesses.”
"We are excited to add such a strong, complementary product portfolio and highly experienced team to the Galata Chemicals family,” said Galata President Steven McKeown.
"The purchase of Solucor is another key step in Galata's growth strategy as we continue to pursue additional strategic acquisitions such as this,” said Vishal Goenka, director, Artek Surfin Chemicals Ltd., parent company of Galata Chemicals.
Balmoral Advisors, LLC acted as Axiall's financial advisor in the transaction.
About Galata Chemicals
Galata Chemicals is a leading global producer of plastics additives including mixed metal heat stabilizers, organotin heat stabilizers, epoxidized soybean oil, polymer modifiers, tin catalysts and bio-based plasticizers. Additional information concerning Galata is available at www.galatachemicals.com.
Axiall Corporation is a leading integrated chemicals and building products company. Headquartered in Atlanta, Axiall has manufacturing facilities located throughout North America and in Asia to provide industry-leading materials and services to customers. For more information, visit www.axiall.com.
Cautionary Statements About Forward-Looking Information
This press release contains certain statements relating to future events and Axiall Corporation’s intentions, beliefs, expectations, and predictions for the future. Any such statements other than statements of historical fact are forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Words or phrases such as “anticipate,” “believe,” “plan,” “estimate,” “project,” “may,” “will,” “intend,” “target,” “expect,” “would” or “could” (including the negative variations thereof) or similar terminology used in connection with any discussion of future plans, actions or events generally identify forward-looking statements. These statements relate to, among other things, the anticipated benefits of the disposition of the Solucor business, and other statements of expectations concerning matters that are not historical facts. These statements are based on the current expectations of Axiall’s management. There are a number of risks and uncertainties that could cause Axiall’s actual results to differ materially from the forward-looking statements included in this press release. These risks and uncertainties include, among other things: changes, seasonality and/or cyclicality in the industries in which Axiall’s products are sold and changes in demand for Axiall’s products or increases in overall industry capacity that could affect production volumes and/or pricing; the costs and operating restrictions associated with compliance with current and future environmental, health and safety laws and regulations; the availability and pricing of energy and raw materials; risks, hazards and potential liabilities associated with manufacturing and transporting chemicals and building products, including, among others, explosions and fires, mechanical failures, unscheduled downtime, and litigation related thereto; changes in the general economy, including the impacts of the current, and any potential future, economic uncertainties in the housing and construction markets; Axiall’s level of indebtedness and debt service obligations and ability to continue to comply with the covenants in Axiall’s asset-based and term loan credit agreements and the indentures governing Axiall’s 4.875 percent senior notes due 2023 and 4.625 percent senior notes due 2021; Axiall’s reliance on a limited number of suppliers for specified feedstock and services and Axiall’s reliance on third-party transportation; competition within Axiall’s industry; any impairment of goodwill, indefinite-lived intangible assets or other intangible assets; the failure to realize the benefits of, and/or disruptions resulting from, any asset dispositions, asset acquisitions, joint ventures, business combinations or other transactions, including the disposition of our Solucor business; how customers, competitors, suppliers and employees will react to the divestiture of our Solucor profiles business; fluctuations in foreign currency exchange rates, especially with respect to the United States and Canadian dollars, and interest rates; uncertainties regarding future actions that may be taken by Westlake Chemical Corporation (“Westlake”) in furtherance of its unsolicited proposal to acquire Axiall or Westlake’s intent to nominate director candidates for election at Axiall’s 2016 annual meeting of stockholders; potential operational disruption caused by Westlake’s future actions that may make it more difficult to maintain relationships with customers, employees or suppliers; and Axiall’s ability to successfully implement and administer Axiall’s cost-saving initiatives (including Axiall’s restructuring programs) and produce the desired results (including projected savings). In light of these risks, uncertainties, assumptions, and factors, the forward-looking events discussed in this press release may not occur. Other unknown or unpredictable factors could also have a material adverse effect on Axiall’s actual future results, performance, or achievements. For a further discussion of these and other risks and uncertainties applicable to Axiall and its business, see Axiall’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and subsequent filings with the SEC. As a result of the foregoing, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Axiall does not undertake, and expressly disclaims, any duty to update any forward-looking statement whether as a result of new information, future events, or changes in its expectations, except as required by law.