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Westlake Chemical's (WLK) Unit Wraps Up Buyout of LASCO Fittings

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Westlake Chemical Company’s (WLK - Free Report) subsidiary, North American Pipe Corporation (“NAPCO”) completed the buyout of LASCO Fittings, Inc from Aalberts, NV. LASCO Fittings is a Brownsville, TN-based injected-molded PVC fittings manufacturer.

NAPCO is optimistic that LASCO Fittings will enable it to expand its market outreach, especially since the latter has expertise in a range of markets in the United States like plumbing, pool and spa, industrial, irrigation and retail. LASCO’s portfolio is compatible with NAPCO’s existing range of products, thus widening the latter’s product offerings.

LASCO Fittings, which employs roughly 560 employees, will continue to operate a 48-acre, 500,000 square foot production and distribution site in Brownsville, northeast of Memphis. The entity also has eight regional distribution facilities strategically located throughout the United States.

Shares of Westlake Chemical have returned 42.5% in the past year compared with 43.6% surge of its industry.

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Westlake Chemical, in its last earnings call, stated that will continue with its business investments. It expects that the acquisitions of Boral North America and LASCO Fittings, totaling around $2.4 billion, will initiate a stage of development and growth for the company. The company is optimistic about strength in the housing, repair and remodeling markets. It also aims to leverage growth opportunities arising from the acquisitions.

 

Zacks Rank & Other Key Picks

Westlake Chemical currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .

Nucor has a projected earnings growth rate of around 489.2% for the current year. The company’s shares have surged 162.8% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 38.9% in the past year. It currently carries a Zacks Rank #2.

Cabot has an expected earnings growth rate of around 138.5% for the current fiscal. The company’s shares have rallied 35.6% in the past year. It currently holds a Zacks Rank #2.


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