Westlake Corporation completed the acquisition of the global compounding solutions businesses of the ACI/Perplastic Group on January 5 2026, adding four production facilities in Mexico, Portugal, Romania and Tunisia to its operations. The financial terms of the transaction were not disclosed.
The deal expands Westlake’s Global Compounds footprint and strengthens its Housing & Infrastructure Products (HIP) segment by adding specialty PVC, polyolefin, silicone and thermoplastic rubber compounds that serve the wire and cable sector. ACI’s 2024 net sales were approximately EUR 210 million, underscoring the scale of the new business.
Westlake’s recent financial performance has been challenging. In the third quarter of 2025 the company reported a net loss of $38 million on sales of $2.8 billion, and earnings per share of –$0.29 versus a consensus estimate of $0.18. The loss was driven largely by a $727 million goodwill impairment related to its North American chlorovinyls business, while the Performance and Essential Materials (PEM) segment continued to face margin compression. In contrast, the HIP segment generated operating income of $151 million, reflecting resilience in construction and infrastructure markets.
Management emphasized that the acquisition is an “excellent strategic fit” and will support Westlake’s growth in specialty materials. CEO Jean‑Marc Gilson noted that the combination will broaden the company’s product portfolio and add advanced technologies. Westlake is also pursuing $200 million in structural cost reductions for 2026, aiming to offset the impact of the goodwill impairment and improve profitability.
Analysts have issued mixed guidance. The consensus rating is Hold with a $85 target, while some analysts have rated the stock Neutral. The acquisition signals Westlake’s commitment to expanding its global compounds business despite recent earnings challenges, and it is expected to create synergies and broaden the company’s market reach.
The completion of the transaction adds new manufacturing sites and technology, positioning Westlake to capture growth in infrastructure and construction markets while addressing margin pressures in its PEM segment. The deal represents a strategic step toward a more diversified and resilient business model.
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