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Westlake (WLK) Wraps Up Dimex Buyout, Aims for Sustainability

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Westlake Chemical Corporation (WLK - Free Report) recently announced that it has completed the acquisition of Dimex LLC, from Grey Mountain Partners, a private equity firm. The acquisition was announced in early August 2021.

The deal emphasizes Westlake’s longstanding dedication to environmental conservation and active contribution to a sustainable and circular economy.

Dimex produces a wide range of consumer products made from post-industrial-recycled polyvinyl chloride, polyethylene, and thermoplastic elastomer materials. In recent times, as more consumers are willing to pay for products made with recyclable materials, the transaction uplifts Westlake’s growth trajectory and Environmental, Sustainability, and Governance commitment. The company seeks to continually work on incorporating recyclable plastic materials into products to deliver environmentally responsible goods and the transaction is in sync with its goal.

Westlake believes that as Dimex uses its compounds for its products, it is better positioned to provide the required engineering, manufacturing, and distribution capabilities and be more client-centric. It is hopeful of adding to Dimex’s portfolio of environment-friendly products through this transaction.

Westlake's shares have risen 29.5% in the past year compared with the industry’s 37.4% growth.

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In the second-quarter earnings call, the company noted that it is keen to continue with its business investments going forward. It expects the acquisitions of Boral North America and LASCO Fittings, totaling approximately $2.4 billion, to initiate a stage of development and growth for the company. The LASCO buyout is also expected to add to Westlake subsidiary NAPCO’s product portfolio with a focus on new markets and products. Westlake is optimistic about strengthening the housing, repair, and remodeling markets by leveraging the growth opportunities arising from the acquisitions.

Zacks Rank & Other Stocks to Consider

Currently, Westlake sports a Zacks Rank #2 (Buy).

Other top-ranked players in the basic materials space are Avient Corporation (AVNT - Free Report) , Aperam S.A. (APEMY - Free Report) , and AdvanSix Inc. (ASIX - Free Report) , each flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Avient has a projected earnings growth rate of 64.2% for the current year. The company’s shares have jumped nearly 78% in a year.

Aperam has a projected earnings growth rate of 429.8% for the current year. The company’s shares have appreciated 120.2% over the past year.

AdvanSix has a projected earnings growth rate of 160.4% for the current year. The company’s shares have skyrocketed 205.4% over the past year.

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Avient Corporation (AVNT) - free report >>

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