ATLANTA--Axiall Corporation (NYSE: AXLL), a leading integrated chemicals and building products company, has signed a definitive agreement to sell its window and door profiles business, a component of Royal Building Products, to OpenGate Capital. The transaction is subject to regulatory approval and customary closing conditions. The sale is expected to close on March 31, 2016.
The Axiall compounding facility located in Concord, Ontario, is included in the window and door profiles transaction. It is a primary supplier to the window and door profiles business. As a North American market leader in innovation of vinyl profiles extrusion, the business provides quality custom profiles systems and platform products to meet the needs of window manufacturers across North America. The business works closely with customers to design products that meet the needs of their markets.
“As we refine our portfolio, we are pleased to have reached an agreement to sell our window and door profiles business to OpenGate Capital,” said Axiall President and CEO Tim Mann. “This is our fourth divestiture of non-core assets since April 2015, which allows us to better focus on our core chlorovinyls and derivatives. In particular, selling this business leaves Royal Building Products with the solid core product lines that generate better EBITDA margins, namely our siding, trim, moulding, fittings and pipe businesses.”
RBC Capital Markets acted as Axiall's financial advisor in the transaction.
About OpenGate Capital
OpenGate Capital is a global private equity firm specializing in the acquisition and operation of businesses seeking revitalization through growth and operational improvements. Established in 2005, OpenGate Capital is headquartered in Los Angeles, Calif., and maintains offices in New York, Paris, France and São Paulo, Brazil. For more information, please visit www.opengatecapital.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 window and door profiles 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 window and door profiles business; how customers, competitors, suppliers and employees will react to the divestiture of our window and door 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.