Westlake Significantly Expands its Presence in the Growing North American Home Construction Materials Markets by Acquiring Boral’s North American Building Products Businesses

HOUSTON – (BUSINESS WIRE) – Westlake Chemical Corporation (NYSE: WLK) today announced that it has entered into a definitive agreement with Boral Industries Inc., a wholly-owned subsidiary of Boral Limited (ASX: BLD), under which Westlake will acquire North American construction products from Boral’s company Area roofers; Siding, moldings and shutters; decorative stone; and Windows for $ 2.15 billion in a cash-only transaction. The proposed transaction was unanimously approved by the boards of both companies and is expected to close in the second half of 2021, subject to receipt of regulatory approval and other customary closing conditions.

The combination of Westlake’s leading construction products with Boral’s product lines creates a stronger business with significantly larger size, greater product and geographic diversity, and improved growth prospects across the North American construction products market. Westlake expects the proposed transaction to be positive for earnings in the first full year of combined operations and anticipates cost synergies of approximately $ 35 million per year.

Boral’s North American construction products business employs around 4,600 people at 29 production sites in the USA and Mexico. Boral’s North American construction products business had sales of over $ 1 billion for the fiscal year ended June 30, 2020.

“This transaction will bring established and high quality architectural solutions and premium product brands in the roof area; Siding, moldings and shutters; decorative stone; and windows to complement our existing businesses including Royal Building Products’ siding, siding and moldings, DaVinci composite roofs, NAPCO pipes and fittings and the specialty PVC compounding business, “said Albert Chao, President and Chief Executive Officer of Westlake. “The combination of Boral North America’s product lines with Westlake’s building products business will significantly expand our residential building products business and expand our presence in North America. We look forward to welcoming the Boral employees to the Westlake family and realizing the tremendous opportunities for the combined businesses to grow. ”

Transaction details

Westlake will purchase Boral’s construction products business for $ 2.15 billion in cash. The purchase price is subject to customary adjustments, including working capital adjustments.

The proposed Transaction is subject to customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Deutsche Bank Securities Inc. is serving as financial advisor and Baker Botts LLP is serving as legal advisor to Westlake. BofA Securities is acting as financial advisor and Alston & Bird LLP is acting as legal advisor to Boral.

Conference call and webcast

Westlake will host a conference call on Monday, June 21, 2021 at 10:00 a.m. Eastern Time to discuss the proposed transaction. To access the conference call via a live audio webcast, visit Westlake’s Investor Relations page at https: //investors.westlake .com / events-and-presentations / default.aspx. The conference call can also be accessed by dialing (855) 760-8160 or (704) 288-0624 for international callers using the access code 2963369. Participants should dial in approximately 15 minutes before the call. People who dial in are asked to identify themselves and their affiliations.

A recording of the call can be found on Westlake’s Investor Relations page or by calling (855) 859-2056 or (404) 537-3406 for international callers. The access code is 2963369. Archived replays of the live webcast will be available on Westlake’s Investor Relations page approximately two hours after the call and will be available until 11:59 p.m. Eastern Time on Monday, June 28, 2021.

About Westsee

Westlake is a global manufacturer and supplier of materials and innovative products that enrich life every day. Headquartered in Houston, we deliver the building blocks for vital solutions – from building products and infrastructure materials to packaging and health products to automotive and consumer goods. For more information, please visit the company’s website at www.westlake.com.

About Boral Limited

Boral is an international construction products and building materials group. In Australia, Boral is the largest integrated building materials supplier and manufactures and sells a wide range of building materials including quarry products, cement, fly ash, concrete, asphalt and recycled materials, and wood, roofing and masonry products. In North America, Boral has leading businesses in fly ash and construction products, including roofers, engineered stone products, lightweight siding and siding, and windows. Boral employs around 17,500 people and contractors and has around 650 operating and sales locations in Australia and North America.

Forward-Looking Statements

The statements in this press release that are not historical statements, including statements regarding the integration of Boral’s construction products business, the anticipated benefits of the proposed transaction, including the expected synergies and gains, the expected timing of completion, and whether the required regulatory approval will be obtained, are forward-looking statements within the meaning of federal securities laws. These forward-looking statements are subject to significant risks and uncertainties, many of which are beyond Westlake’s control. Actual results could differ materially based on factors including, but not limited to: the date on which the proposed transaction was completed; the conditions for the completion of the proposed Transaction may not be met or the proposed Transaction may not otherwise be completed; the risk that the HSR approval will not be granted or will be granted under unexpected conditions; the diversion of administrative time on transaction-related issues; the ultimate timing, outcome and results of the integration of Boral’s business and the ultimate outcome of Westlake’s operational efficiency applied to Boral’s products and services; the impact of the proposed transaction, including the future financial condition, results of operations, strategy and plans of the combined company; anticipated synergies and other benefits from the proposed transaction and Westlake’s ability to realize such synergies and other benefits; Litigation, settlement and investigation results; and other risks and uncertainties described in Westlake’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the Securities and Exchange Commission (“SEC”) in February 2021, Quarterly Report on Form 10- Q for the quarter ended March 31, 2021, which was filed with the SEC in May 2021, the most recent current reports on Form 8-K filed by Westlake, and other SEC filings. These filings also discuss some of the key risk factors identified that could affect Westlake’s business, results of operations and financial condition. Westlake assumes no obligation to revise or publicly update any forward-looking statements for any reason.