Nakan

Nakan is a leader in PVC compounding with world leadership in automotive applications, and a strong position in Medical, Building, and Construction and other applications.

Nakan has a unique portfolio of technologies and a footprint which allows it to supply major customers all over the world with tailor-made products designed to their specific needs
At acquisition, Nakan had over 620 employees over 8 plants, a sales office, an R&D center and headquarter offices covering Europe, Asia, and America.

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Acquired:

February 2014

Transaction Type:

Corporate Carve-out

Acquired from:

Klesch Group

Industry:

Chemicals

Headquarters:

Reims, France

Realized:

January 2019

Buyer:

Westlake Chemical Corporation

Status:

Exited

Investment Merits:

Market leading position: World leader in Slush PVC for automotive application and strong position in Medical, B&C, and Consumer Goods
Meaningful scale: Profitable business with worldwide industrial and commercial footprint
Operational improvements: Improve mix and focus on most rewarding products (Automotive, Medical, Vinyl records, etc.), while separating from its less-performing, smaller-scale non-core sister companies (Alphacan: PVC profiles and Omniplast: PVC pipes & fittings)
Efficient / low-risk carve-out: Downstream division of a major PVC producer (KemOne) requiring supply separation. Carve-out of Nakan smaller sister companies (Alphacan and Omniplast)

Value Creation

Reduced Cost Basis
Improve mix and focus on most rewarding products (Automotive, Medical, Vinyl records, etc.), while separating from its less-performing, smaller-scale non-core sister companies (Alphacan: PVC profiles and Omniplast: PVC pipes & fittings)
Downstream division of a major PVC producer (KemOne) requiring supply separation. Carve-out of Nakan smaller sister companies (Alphacan and Omniplast)

Exit

Nakan was acquired through a corporate carve-out from Klesch Group in early 2014
In January of 2019, Nakan was sold to Westlake Chemical Corporation who viewed the business as accretive to their global platform