Proposed Acquisition of LCY Chemical Corp. by KKR Consortium
July 22, 2018
Shareholders to Receive
Existing Management Team Will Continue to Lead Company with Support from KKR
Partnership Provides Greater Access to Capital and Operational
Resources to Undertake Growth Opportunities in
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The offer price represents a premium of 17.28% to LCY’s closing price on
Mr. TH Hong, Chairman of LCY, said, “The proposed transaction delivers
meaningful and immediate value to our shareholders, while also providing
greater access to capital, operational resources and the time horizon
needed to execute a strategy to drive long-term, sustainable value
creation. KKR is the ideal partner to help us build on our 50-year track
record of producing high-quality chemical products for customers
worldwide and take LCY to its next level of growth given KKR’s focus on
responsible business and operational excellence. KKR’s decision to
partner with us is a testament to the innovative and talented team we
have built in
Mr.
Founded in 1965, LCY is a producer of specialty chemicals with a
concentration on thermoplastic elastomers and performance plastics used
in infrastructure, health care, household, automotive, textile and
electronic products, among other diverse applications. LCY will maintain
its corporate headquarters in
KKR is a global investment firm with over 42 years of experience
partnering with management teams and helping them to create value as a
long-term, patient investor. Following completion of the transaction,
KKR intends to work closely with LCY’s existing management team and
employees to strengthen the Company’s business platform by exploring
expansion opportunities in new and existing international markets as
well as penetrating new verticals, with a goal to grow and support
employment in
Immediately following consummation of the share swap, KKR will hold a majority and controlling interest in LCY. The KKR consortium includes participation by the Company’s current employees and certain members of the Founding Family.
KKR makes its proposed investment from its Asian Fund III. The
transaction is expected to close in the fourth quarter of 2018, subject
to customary closing conditions and regulatory approvals. Upon the
completion of the transaction, LCY will become a private company, and
its shares will no longer be traded on the
About
Founded in 1965,
About KKR
KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate and credit, with strategic manager
partnerships that manage hedge funds. KKR aims to generate attractive
investment returns for its fund investors by following a patient and
disciplined investment approach, employing world-class people, and
driving growth and value creation with KKR portfolio companies. KKR
invests its own capital alongside the capital it manages for fund
investors and provides financing solutions and investment opportunities
through its capital markets business. References to KKR’s investments
may include the activities of its sponsored funds. For additional
information about
Forward-Looking Statements
This press release contains forward-looking statements, including but not limited to statements about completing the proposed transaction on the terms and timetable described above, and strategic or other potential benefits of the proposed transaction. Words such as “will,” “believes,” “expects,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and investors should not place undue reliance on such statement. These forward-looking statements speak only as of the date of this press release, and KKR and the Company do not undertake any obligation to update or revise any of the forward-looking statements to reflect future events or circumstances, except as required by law.
1 The figures set out above are based on Bloomberg data as of the last full trading day immediately prior to the date of the announced share swap.
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For
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+886
983-051-488
Charles.wei@lcygroup.com
or
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James.kuo@lcygroup.com
or
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or
For
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