Kraton To Be Acquired By DL Chemical In All-cash Deal Valued At About $2.5 Bln - Quick Facts

Kraton Corp. (KRA), a sustainable producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products, announced Monday that it has entered into a definitive merger agreement, pursuant to which DL Chemical Co., Ltd., a subsidiary of DL Holdings Co., Ltd. (formerly Daelim Industrial Co., Ltd.), will acquire 100% of Kraton in an all-cash transaction implying an enterprise value of approximately $2.5 billion.

Under the terms of the Merger Agreement, Kraton stockholders will receive $46.50 in cash for each share of Kraton common stock they own. As part of the transaction DL Chemical has conveyed that they have fully committed financing.

Following an extensive review of a wide-range of strategic alternatives focused on maximizing value for the benefit of its stockholders, Kraton's Board has determined that the sale of Kraton to DL Chemical is in the best interest of Kraton stockholders.

The transaction provides immediate and certain value for Kraton stockholders, and represents an attractive premium of approximately 50% over Kraton's unaffected market valuation as of early July.

The Merger Agreement was unanimously approved by Kraton's Board of Directors and they recommended that Kraton stockholders vote in favor of the transaction. The acquisition, subject to certain customary closing conditions, including the receipt of stockholder and regulatory approvals, is expected to close by the end of the first half of 2022.

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