Hexion Holdings Corporation announced that it has entered into a definitive agreement to be acquired by affiliates of American Securities LLC for $30.00 per share in cash. The transaction is expected to close in the first half of 2022 and is contingent on the closing of the company’s previously announced sale of its epoxy business to Westlake Chemical Corporation, shareholder and regulatory approvals and satisfaction of other customary closing conditions. .
Hexion is a provider of thermoset resins, serving the global adhesive, coatings, composites and industrial markets through a broad range of thermoset technologies, specialty products, and technical support. It has 27 manufacturing facilities globally and approximately 1,300 employees.
“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.”
American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $200 million to $2 billion.
Hexion Holdings net sales for the year-ended December 31, 2020 were $2.5 billion. Pro forma net sales for the same period, reflecting the sale of the its Epoxy Business, would have been about $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.
“This transaction, along with the pending sale of our epoxy business, is the conclusion of a comprehensive evaluation of strategic actions aimed at maximizing value for our shareholders and best positioning the company for long-term growth. American Securities has a proven track record of partnering with leading companies and its associates to drive collaborative success,” saidCraig Rogerson, chairman, president, and CEO of Hexion.
He added: “Operating under American Securities’ ownership, Hexion Holdings has a bright future and is poised to build on its momentum and continue its record of delivering innovative, high-quality products and service to customers.”