Hexion Holdings Corp., Columbus, Ohio, last month entered into a definitive agreement to be acquired by affiliates of New York-based equity firm American Securities LLC for US$1.7 billion, or $30.00 per share in cash.
The transaction is expected to close in the first half of 2022, following and conditioned upon the closing of the company’s previously announced sale of its Epoxy business to Westlake Chemical Corp., Houston, shareholder and regulatory approvals, and satisfaction of other customary closing conditions.
Holders of a majority of the outstanding Hexion shares have agreed to support the transaction.
Hexion net sales for the year-ended Dec. 31, 2020, were $2.5 billion. Pro forma net sales for the same period, reflecting the sale of the company’s Epoxy business, would have been approximately $1.4 billion.
Post-sale of the Epoxy business, the remaining Hexion business will be a global producer of adhesives and performance materials that enable the production of engineered wood products and other growing specialty materials. The company has 27 manufacturing facilities globally and approximately 1,300 employees.
The transaction, announced Dec. 20, delivered Hexion shareholders a 15 percent premium to the closing price as of Dec. 17, 2021, and a 53 percent premium to the company’s closing share price on July 30, 2021, the day prior to its announcement of its ongoing strategic review.
“Hexion is a market leader and leverages deep chemistry and application knowledge to support its customers in diverse end markets,” said Scott Wolff, a Managing Director of American Securities. “The company is well-aligned with global megatrends, including safety and sustainability requirements and regulations, population growth, and household formation. We are thrilled to partner with Hexion to support the next chapter of the company’s growth.”
In the Hexion-Westlake deal, which was first announced Nov. 24, 2021, Hexion entered into a definitive agreement to sell its Epoxy-based Coatings and Composite businesses, including the epoxy specialty resins and base epoxy resins and intermediates product lines, for approximately $1.2 billion to Westlake.
The business generated total sales of approximately $1.5 billion for the last twelve months ended Sept. 30, 2021. The transaction includes approximately 1,300 associates and eight manufacturing facilities globally.