22 July 2018
Founded in 1965, LCY is a producer of specialty chemicals
with a concentration on
thermoplastic elastomers and performance plastics
used in infrastructure, health care, household, automotive,
textile and electronic products, among other diverse applications.
LCY will maintain its corporate headquarters in
its existing global distribution and sales networks
and its production plants in
and
Products
LCY Globalprene™ is a styrene-based polymer.
Also referred to as styrenic block copolymer (SBC),
it is a member of the thermoplastic synthetic rubber family
and is composed of
mainly styrene/butadiene or styrene/isoprene.
SBC products have a wide range of applications
SEBS
Globalprene™ SEBS is hydrogenated SBS
with higher content of 1, 2 - vinyl structure.
After hydrogenation, the copolymer is composed of
polystyrene (S) - polyethylene (E) -
polybutylene (B) - polystyrene (S)
and abbreviated as SEBS.
SIS
Globalprene™ SIS is a styrene/isoprene block copolymer.
It is used in hot-melt and pressure-sensitive adhesives.
SIS is environmentally friendly.
SBS-NOE
Globalprene™ SBS NOE (Non-Oil-Extended) is a
styrene / butadiene block copolymer.
It does not contain process oil and is also called
a dry grade.
SBS-OE
Globalprene™ SBS OE (Oil-Extended) is
a styrene / butadiene block copolymer.
It contains process oil and is also called
an oil extended grade.
Applications
Adhesives
Hot-melt pressure sensitive adhesives
can form a coating in its molten state and rapidly bond
under light pressure after it is cooled.
It can be peeled off easily without contaminating the surface
of the adhered substrate.
Hot-melt pressure sensitive adhesives
are mainly made of a thermoplastic elastomer
(TPE, e.g. SBS, SIS), tackifying resin, anti-oxidant and filler.
Using saturated TPE (e.g. SEBS and SEPS,
produced by the hydrogenation of SBS or SIS)
in the making of hot-melt pressure sensitive adhesives
increases the oxidation resistance, UV resistance
and heat resistance of the adhesive,
and improves its weatherability.
SBS can also be used to make solvent based adhesives
featuring high initial bond strength, high viscosity,
and long open time.
Asphalt Modification
Using TPE to modify conventional asphalt
can extend its service temperature,
improves its mechanical properties,
increases the asphalt’s cold temperature flexibility
and enhances its ageing performance.
When used in road construction, TPE-modified asphalt
in combination with the proper asphalt mix
can improve road safety by increasing
the road’s load handling capacity.
When applied in roofing and waterproofing works,
TPE-modified asphalt bonds better to the structure,
is less likely to have vertical flow and ages better
to help reduce the high cost of maintenance and repair.
Composite Solutions
TPE is commonly used to toughen engineering plastics.
TPE modified plastics show better impact strength
and low-temperature resistance.
TPE film added with nanoparticles
has improved gas barrier properties and is extensively used
in food and beverage packaging,
and in precision filter infusion bags.
The addition of a compatibilizing agent and polar plastic
in TPE enhances the compatibility of TPE
with dissimilar materials.
For example, the addition of
maleic anhydride (MAH) grafted SEBS and TPU
enables TPE to bond with nonwoven fabrics
to produce synthetic leather and various textile composites
Plastics Modification
Grafted SEBS is used mainly
in the modification of engineering plastics, such as
polyamide (PA), ABS, polycarbonate (PC) and PET
to increase the toughness of the material.
It is also used as a compatibilizing agent
in the modification of engineering plastics
to enhance miscibility between materials.
Adding only a small amount of grafted SEBS
improves the toughness of engineering plastic markedly
and increases their impact resistance.
The combination of grafted SEBS and other SEBS polymers
results in stable copolymers
with excellent oxidation and UV resistance.
Footware
SBS is used extensively in TPR shoe soles.
It can replace vulcanized rubber and polyvinyl chloride
based shoe materials.
SBS shoe soles have excellent elasticity, aesthetic colors,
good anti-slip, gas barrier, wear resistance,
flexing endurance and low-temperature resistance properties.
The coefficient of friction of SBS shoe soles
on an asphalt road surface and wet/drenched road surface
is much higher than shoe soles made of other materials.
Another feature of SBS is its environmental friendliness.
Waste SBS shoe soles can be recycled and reprocessed.
SBS shoe soles are moderately priced and available
in a variety of styles. They can be semi-clear,
imitation ox-tendon soles, colorful dual-color soles,
or lightweight foam soles.
Contact :
LCY CHEMICAL CORP.
No.3, Zhonglin Rd., Xiaogang Dist.,
Kaohsiung City 812, Taiwan
Tel +886-2-27631611
(Marketing and Customer Service)
Fax +886-2-27645749
DETAILS
Shareholders to Receive
a 17.28% Premium to
Existing Management Team Will Continue
to Lead Company with Support from KKR
Partnership Provides Greater Access to
Capital and Operational Resources
to Undertake Growth Opportunities
in
and global investment firm KKR
today announced the signing of a share exchange agreement
for a consortium led by KKR
to acquire all of the issued and outstanding shares
of LCY for
adjusted to include a
(rounded to the nearest
(ex-dividend offer price is
The transaction, which has been unanimously approved
by the board of directors of LCY
upon the recommendation of
its Audit Committee comprising independent directors,
represents a total market capitalization
of approximately
The offer price represents a premium of 17.28%
to LCY's closing price on
the last trading day prior to the transaction announcement.
It also represents a premium
of 19.2%, 23.0% and 24.3%
over the 30-day, 90-day and 180-day
average closing prices, respectively.1
KKR is a global investment firmwith over 42 years
of experience partnering
with management teams and helping them
to create value as a long-term, patient investor.
Following completion of the transaction, KKR intends
to work closely with LCY's existing management team
and employees to strengthen the Company's business platform
by exploring expansion opportunities
in new and existing international markets
as well as penetrating new verticals,
with a goal to grow and support employment
in
KKR also looks to enhance the Company's approach
to environmental, social and governance management
to responsibly and sustainably grow LCY's corporate value.
Immediately following consummation of the share swap,
KKR will hold a majority and controlling interest in LCY.
The KKR consortium includes participation
by the Company's current employees
and certain members of the Founding Family.
KKR makes its proposed investment from
its Asian Fund III.
The transaction is expected to close
in the fourth quarter of 2018, subject to
customary closing conditions and regulatory approvals.
Upon the completion of the transaction,
LCY will become a private company,
and its shares will no longer be traded
on the
KKR and its partners are committed
to supporting LCY's global expansion
and will evaluate a range of options
to support the Company's strategy,
including capital market activities in
to KKR and the consortium.
arrange debt financing to the consortium
for the share exchange transaction,
subject to certain customary conditions.
Mr. TH Hong,
Chairman of LCY
"The proposed transaction delivers
meaningful and immediate value to our shareholders,
while also providing greater access to
capital, operational resources
and the time horizon needed
to execute a strategy
to drive long-term, sustainable value creation.
KKR is the ideal partner to help us build on
our 50-year track record
of producing high-quality chemical products
for customers worldwide
and take LCY to its next level of growth
given KKR's focus on responsible business
and operational excellence.
KKR's decision to partner with us is a testament
to the innovative and talented team
we have built in
and we look forward to working with them
to build an even stronger company."
Mr.
Member and Head of KKR Greater China
"LCY is a global leader in the specialty chemical industry
and has earned its place
as one of Taiwan's leading global companies.
We believe that KKR's partnership approach
will enable LCY to make the necessary investments
in R&D and other growth initiatives
to maintain the technological capabilities, capacity
and product differentiation needed
to further the Company's leadership position going forward.
This is an exciting opportunity
to work alongside LCY's exceptional management
and dedicated employees to help the Company
take full advantage of the opportunities that lie ahead."
For
+886 2-2763-1611
+886 983-051-488
Charles.wei@lcygroup.com
or
+886 2-2763-1611
+886 900-797-195
James.kuo@lcygroup.com
or
Compass PR (
+886 936-140-606
june.kuo@compasspr.com.tw
or
+886 912-429-786
olivia.hsieh@compasspr.com.tw
or
For KKR
KKR Asia
+852 3602-7335
Anita.Davis@KKR.com
or
KKR
+1 212-750-8300
Media@KKR.com
or
+852 3842-2200
KKR-SVC@sardverb.com
Source:
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