Georgia Gulf to Buy Royal Group

Georgia Gulf Corp. in Atlanta, the third largest PVC producer in North America, agreed in mid-June to buy Royal Group Technologies Ltd., Woodbridge, Ont., a major producer of PVC building products, for $1.6 billion.

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Georgia Gulf Corp. in Atlanta, the third largest PVC producer in North America, agreed in mid-June to buy Royal Group Technologies Ltd., Woodbridge, Ont., a major producer of PVC building products, for $1.6 billion. Royal Group, which says it is the largest PVC extruder in North America, makes PVC siding, window profiles, pipe, fencing, decking, and more. Georgia Gulf is a major supplier of PVC to siding producers, who may now view the company as a competitor. Royal itself produces about 500 million lb/yr of PVC resin internally and buys about 300 million lb commercially, so the deal gives Georgia Gulf a 15% addition to its 2.7 billion lb/yr capacity and also its first vertical integration with extrusion. Its larger PVC competitors all own pipe production.

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