Westlake Acquires ACI's Compounding Solutions Division to Broaden Product Offerings

Westlake Corp is set to acquire the compounding solutions division of ACI/Perplastic Group, a Portuguese manufacturer. The deal is expected to conclude in early 2026, pending customary closing conditions and regulatory approvals. The acquisition will broaden Westlake's product offerings, particularly in the wire and cable industries. Westlake's financial health presents a mixed picture, with declining revenue growth and resilience over a longer horizon. The company's balance sheet reflects a solid liquidity position and balanced leveraging. The acquisition may drive future growth and enhance Westlake's position within the chemicals industry.

Westlake Corporation (NYSE: WLK) has announced its intention to acquire the global compounding solutions businesses of the ACI/Perplastic Group. The acquisition, expected to close in early 2026, aims to expand Westlake's product offerings and strengthen its position in the wire and cable industry. The deal includes ACI's four production facilities in Mexico, Portugal, Romania, and Tunisia, which manufacture polyvinyl chloride, polyolefin, silicone, and thermoplastic rubber compounds, generating net sales of approximately €210 million in 2024 [1].

ACI, headquartered in Guarda, Portugal, is renowned for its innovative and high-quality materials. The acquisition will allow Westlake to integrate ACI's business with its existing compounding operations, enhancing its global footprint and expanding into new specialty products and technologies [2]. The combination is strategically aligned with Westlake's Housing & Infrastructure Products segment, presenting a strong fit for future growth.

Westlake's financial health is mixed, with declining revenue growth and resilience over a longer horizon. However, the company maintains a solid liquidity position and balanced leveraging on its balance sheet. The acquisition may drive future growth and enhance Westlake's position within the chemicals industry [3].

References:
[1] https://seekingalpha.com/news/4489046-westlake-announces-acquisition-of-aciperplastic-groups-compounding-solutions-business
[2] https://www.nasdaq.com/articles/westlake-acquire-acis-compounding-solutions-business
[3] https://www.stocktitan.net/news/WLK/westlake-announces-acquisition-of-aci-compounding-solutions-c3qr5y28letf.html