Westlake Corporation · NYSE:WLK
Westlake — Westlake Chemical — Merger or Acquisition (June 2016)
14 slides from Westlake's merger presentation, Jun 10, 2016
Slide 1: Westlake Chemical to Acquire Axiall Corporation
Creation of a North American Olefins and Vinyls Leader June 10, 2016 Westlake Chemical to Acquire Axiall Corporation 1 Exhibit 99.3
Slide 2: Forward-Looking Statements
Forward-Looking Statements This communication contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding Westlake Chemical Corporation’s (“Westlake”) proposed transaction to acquire Axi
Slide 3: Additional Information and Where To Find It
Additional Information and Where To Find It With respect to the 2016 Axiall annual meeting of stockholders, Axiall has filed a definitive proxy statement and other documents regarding the 2016 annual meeting of stockholders with the SEC and has mailed the definitive proxy statement and a WHITE proxy
Slide 4: A Value Creating Combination
A Value Creating Combination Combination creates a North American Olefins and Vinyls leader #2 North American PVC capacity #3 North American Chlor-Alkali capacity Consistent with Westlake’s vertical integration strategy Combination expected to enhance margin stability Better positioned to capture va
Slide 5: Axiall is a Leader in Chlorovinyls and Building Products
Axiall is a Leader in Chlorovinyls and Building Products 5 A leading North American manufacturer and marketer of integrated chlorovinyls and vinyl-based building products One of the lowest cost producers of chlor-alkali and derivative products in the world Products include: Chlorine Caustic soda Vin
Slide 6: Transaction Overview
Transaction Overview Structure and Consideration $33.00 in cash per Axiall share 9% premium over 52-week average before January 28, 2016 18% discount to 52-week high(a) Represents an enterprise value of approximately $3.8 billion including the assumption of certain Axiall liabilities 6.1x Axiall Cyc
Slide 7: Highly Integrated Chain in the U.S. Enhances Margin Stability for the Combined Company
Highly Integrated Chain in the U.S. Enhances Margin Stability for the Combined Company Key Combination Highlights 7 Creates a North American Chlorovinyls Leader with Enhanced Scale Value Creation by Capturing Synergy Opportunities Combination Builds on Westlake's History of Integration and Strategic
Slide 8: Creates North American Chlorovinyls Leader with Enhanced Scale
Creates North American Chlorovinyls Leader with Enhanced Scale 8 + (a)Based on Q1 3/31/2016 LTM Source:IHS Chemical, Company SEC filings North American PVC capacity North American Chlor-Alkali capacity Net sales (LTM Q1 2016, $ in millions)(a) 1
Slide 9: Highly Integrated Chain in the U.S. Enhances Margin Stability for the Combined Company
v Highly Integrated Chain in the U.S. Enhances Margin Stability for the Combined Company (a) Time period is 2005-2015 Source:IHS Chemical Polyethylene Styrene Chlorine Ethylene Vinyls PVC Building Products All gas-based feedstock capability Ethylene Expansion Typical Vinyls industry margin distribut
Slide 10: Value Creation by Capturing Synergy Opportunities
Sales & Marketing Manufacturing General & Administrative Procurement / Supply Chain Value Creation by Capturing Synergy Opportunities Improved product mix Increased global sales channels Eliminate duplicative G&A costs, including public company expenses Drive best practices corporate wide Ethylene /
Slide 11: Combination Builds on Westlake's History of Integration and Strategic Growth
Acquired Axiall Petro 1 Ethylene Expansion Capacity (MM lbs.) Vinyls Olefins Company Begins Operation in LC Acquired VCM in Calvert Started Petro 1 Acquired PVC Plant Acquired Geismar VCM/PVC Plant Acquired 1 Pipe Plant Acquired 3 Pipe Plants; Calgary Window Plant Start Suzhou China Film Plant Incre
Slide 12: Strong Financial Profile
Strong Financial Profile 12 Expected strong financial profile and significant cash generation from combined company with the benefit of synergies Transaction expected to be accretive in the first year following close Westlake committed to investment grade credit ratings and continued conservative fi
Slide 13: A Value Creating Combination
A Value Creating Combination Combination creates a North American Olefins and Vinyls leader Consistent with Westlake’s vertical integration strategy Complementary geographic and product positions Expanded manufacturing presence expected to enhance future opportunities and global growth potential Exp
Slide 14: Q & A
Q & A 14
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