Westlake Significantly Expands its Presence in the Growing North American Home Construction Materials Markets by Acquiring Boral’s North American Building Products Businesses

HOUSTON–(BUSINESS WIRE)–Westlake Chemical Corporation (NYSE: WLK) announced today that it has entered into a definitive agreement with Boral Industries Inc., a wholly owned subsidiary of Boral Limited (ASX: BLD), under which Westlake will acquire the North American construction products of Boral will acquire roofing companies; siding, trim and shutters; decorative stone; and estimate for $2.15 billion in an all-cash transaction. The proposed transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2021, subject to regulatory approval and other customary closing conditions.

The combination of Westlake’s leading construction products with Boral’s product lines creates a stronger company with significantly greater scale, greater product and geographic diversity and better growth prospects in the North American construction products market. Westlake expects the proposed transaction to contribute to profits in the first full year of the combined business and expects cost synergies of approximately $35 million per year.

Boral’s North American construction products business employs approximately 4,600 people at 29 manufacturing sites in the United States and Mexico. Boral’s North American construction products business generated sales of more than $1 billion during the fiscal year ended June 30, 2020.

“This transaction will deliver established and high-performance architectural solutions and premium product brands in roofing; siding, trim and shutters; decorative stone; and windows to complement our existing business, including Royal Building Products cladding, moldings and moldings, DaVinci composite roofing, NAPCO Pipe and Fittings and specialty PVC compounding businesses,” said Westlake President and Chief Executive Officer, Albert Chao. “The combination of Boral North America’s product lines with Westlake’s construction products business will significantly expand our home-related construction products business and expand our presence in North America. We look forward to welcoming the Boral employees to the Westlake family and realizing the tremendous opportunities to grow the combined businesses.”

transaction details

Westlake will buy Boral’s construction products business for $2.15 billion in cash. The purchase price is subject to customary adjustments, including working capital adjustments.

The proposed transaction is subject to customary closing conditions, including the expiration or termination of the applicable vesting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Deutsche Bank Securities Inc. is acting as financial advisor and Baker Botts LLP is acting as legal counsel to Westlake. BofA Securities is acting as financial advisor and Alston & Bird LLP is acting as legal advisor to Boral.

Conference call and webcast

Westlake will hold a conference call on Monday, June 21, 2021 at 10:00 AM Eastern Time to discuss the proposed transaction. To access the conference call via a live audio webcast, visit Westlake’s Investor Relations page at https://investors.westlake.com/events-and-presentations/default.aspx. You can also access the conference call by calling (855) 760-8160 or (704) 288-0624 for international callers and referencing access code 2963369. Participants should dial in approximately 15 minutes prior to the call. Individuals calling in will be asked to identify themselves and their affiliates.

A replay of the call can be accessed through Westlake’s Investor Relations page, or by calling (855) 859-2056 or (404) 537-3406 for international callers. The access code is 2963369. Archived replays of the live webcast will be available on Westlake’s Investor Relations page from approximately two hours after the call and will be available through Monday, June 28, 2021 at 11:59 PM Eastern Time.

About Westlake

Westlake is a global manufacturer and supplier of materials and innovative products that improve life every day. Headquartered in Houston, we provide the building blocks for essential solutions – from construction products and infrastructure materials, to packaging and healthcare products, to automotive and consumer goods. For more information, visit the company’s website at: www.westlake.com.

About Boral Limited

Boral is an international group for construction products and building materials. In Australia, Boral is the largest integrated building materials supplier, manufacturing and selling a wide range of building materials, including quarry products, cement, fly ash, concrete, asphalt and recycled materials, as well as wood, roof and masonry products. In North America, Boral has leading fly ash and construction products businesses, including roofing, fabricated stone products, lightweight trim and siding and windows. With approximately 17,500 employees and contractors, Boral’s operations span some 650 business and distribution locations in Australia and North America.

Forward-Looking Statements

Statements in this press release that are not historical statements, including statements regarding the integration of Boral’s construction products business, the expected benefits of the proposed transaction, including anticipated synergies and accretions, the expected timing of completion and whether the required regulatory approvals will be obtained are forward-looking statements within the meaning of the federal securities laws. These forward-looking statements are subject to significant risks and uncertainties, many of which are beyond Westlak’s control. Actual results could differ materially based on factors including, but not limited to: the timing to close the proposed transaction; the conditions for closing the proposed transaction may not be met or the closing of the proposed transaction may not otherwise occur; the risk that HSR approval will not be obtained or will be obtained under conditions that are not foreseen; devoting management time to transaction-related matters; the ultimate timing, outcome and results of the integration of Boral’s businesses and the ultimate outcome of Westlake’s operational efficiency applied to Boral’s products and services; the effects of the proposed transaction, including the future financial condition, results of operations, strategy and plans of the combined company; anticipated synergies and other benefits of the proposed transaction and Westlake’s ability to realize such synergies and other benefits; results of lawsuits, settlements and investigations; and other risks and uncertainties described in Westlake’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the Securities and Exchange Commission (“SEC”) in February 2021, Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, filed with the SEC in May 2021, recent current reports on Form 8-K filed by Westlake and other SEC filings. These filings also discuss some of the significant identified risk factors that could affect Westlak’s business, results of operations and financial condition. Westlake assumes no obligation to publicly revise or update any forward-looking statements for any reason.

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