US petrochemicals and plastics producer Westlake has made an exclusive binding offer of about $265 million in cash to buy Nakan, a French compounding business that is owned by private equity group OpenGate Capital.

The offer, which is subject to adjustment, was made so that Nakan can start consulting with French works councils prior to entering into a negotiated, mutually binding purchase agreement.

“The combination of Nakan with Westlake’s existing compounding business will present an excellent strategic fit. It will allow us to expand our compounding business globally and add important specialty products and technology to our existing portfolio,” said Albert Chao, Westlake’s president and CEO.

Headquartered in Reims, Nakan has eight production plants in France, Germany, Italy, Spain, Mexico, China, Japan and Vietnam, along with a research facility in France and an application laboratory in the US. The company had sales of around $300 million in the most recent twelve-month period.

The transaction is expected to close by early 2019, subject to regulatory approvals, completion of required employee consultation procedures and other customary closing conditions.