Kuraray has signed an agreement with DuPont to acquire DuPont's vinyl acetate (VA)-related business. The acquisition price is $543 million plus the associated inventory. The transaction is expected to close in the first half of 2014, subject to official approval from the relevant authorities.
DuPont's VA-related business offers a wide range of products, including polyvinyl butyral (PVB) sheets used as interlayers in safety glass, vinyl acetate polymer (VAM), and polyvinyl alcohol (PVA) resins, which are used in a wide range of industries, including construction and automotive. Its annual sales for the fiscal year ending December 2012 were over $500 million. It has six manufacturing facilities in the United States, Europe, and Asia and serves more than 350 customers worldwide.
Kuraray, the company being acquired, is also a pioneer in the VA-related business, having pioneered the commercialization of PV. In addition to PVA resins and PVB resins and films, the company is globally expanding its products, including PVA films used in LCD displays and individual detergent packaging, and EVOH (ethylene-vinyl alcohol copolymer) resins used in food packaging and gasoline tanks.
This acquisition is part of a strategy to expand DuPont's VA-related business, one of its core businesses. Kuraray has determined that by acquiring the talented global talent, advanced technical and development capabilities, and production and sales networks involved in DuPont's VA-related business, it will be able to significantly grow and develop its VA-related business in the future. Due to the completion date of the business acquisition, there is no expected impact on the company's consolidated financial results for the fiscal year ending March 2014.
DuPont's VA-related business offers a wide range of products, including polyvinyl butyral (PVB) sheets used as interlayers in safety glass, vinyl acetate polymer (VAM), and polyvinyl alcohol (PVA) resins, which are used in a wide range of industries, including construction and automotive. Its annual sales for the fiscal year ending December 2012 were over $500 million. It has six manufacturing facilities in the United States, Europe, and Asia and serves more than 350 customers worldwide.
Kuraray, the company being acquired, is also a pioneer in the VA-related business, having pioneered the commercialization of PV. In addition to PVA resins and PVB resins and films, the company is globally expanding its products, including PVA films used in LCD displays and individual detergent packaging, and EVOH (ethylene-vinyl alcohol copolymer) resins used in food packaging and gasoline tanks.
This acquisition is part of a strategy to expand DuPont's VA-related business, one of its core businesses. Kuraray has determined that by acquiring the talented global talent, advanced technical and development capabilities, and production and sales networks involved in DuPont's VA-related business, it will be able to significantly grow and develop its VA-related business in the future. Due to the completion date of the business acquisition, there is no expected impact on the company's consolidated financial results for the fiscal year ending March 2014.
