Westlake Corporation (NYSE:WLK) has completed its acquisition of the global compounding solutions businesses of the ACI/Perplastic Group, the company announced on January 5. ACI, based in Portugal, produces specialty materials for markets including wire and cable. The deal expands Westlake Global Compounds' operations into Portugal, Romania, and Tunisia, adding to its existing presence in Mexico.
Jean-Marc Gilson, President and Chief Executive Officer of Westlake, stated that the integration of ACI with Westlake's compounding operations represents a strong strategic alignment. "This acquisition will enhance the reach of Westlake Global Compounds and introduce new specialty products and advanced technologies to our portfolio," Gilson said. He added that it offers significant opportunities to further strengthen the company's Housing & Infrastructure Products business.
Separately, on January 8, BofA analyst Matthew DeYoe slightly lowered Westlake Corporation's price target to $82 from $83, while keeping a Buy rating on the stock. DeYoe said the change was part of BofA's broader refresh of price targets across the chemicals names it covers.
BofA's overall view on the sector remains cautious. The firm expects commodity chemicals to face another year of worsening oversupply, while specialty chemicals continue to operate in a choppy demand environment. It described the agricultural setup as more uneven.
BofA noted there are still a few reasons to stay optimistic, pointing to potential catalysts such as PMI indicators turning more supportive, possible interest rate cuts, and the chance that China rationalizes industry capacity. The firm warned, however, that these drivers are fairly new and not yet dependable.
Westlake is a global manufacturer and supplier of materials and specialty products used across a wide range of everyday applications. The company was recently included among the 14 Best Mid Cap Dividend Aristocrat Stocks to Buy Now.