Texas-based Kraton Performance Polymers, a producer of engineering and styrenic bloc copolymers (SBC), has announced plans to merge with Taiwan's LCY to create what the U.S. company called "an industry leader" in the SBC sector with sales of more than $2 billion annually.
The deal, expected to close in this year's fourth quarter, foresees LCY selling its SBC business to Kraton in exchange for shares in a newly created 50:50 joint venture. Kevin Fogart, currently CEO of Kraton, will head the new company incorporated in the UK with administrative headquarters in Houston, Texas.

For Kraton, the merger will facilitate access to fast-growing markets in Asia, and the U.S. styrenics producer will also benefit from LCY's cost-efficient asset base and strategic sourcing of raw materials in Asia, the two partners, said. The Taiwanese partner will gain access to Kraton's differentiated products, R&D platform and global market reach.