Ohio headquartered Hexion Inc. has completed the sale of its phenolic specialty resin business and hexamine business along with European Forest Product Resin business to Black Diamond and Investindustrial, two private-equity firms.
The deal has been closed off at USD 425 million which was announced in September 2020. The breakage has been USD 325 in cash and certain assumed liabilities with the remaining in assumed debt and future proceeds based on the performance of the businesses. Sale presents an opportunity to Hexion to invest the sum in its other businesses and to pay its debt. As per the announcement, the deal includes 11 plants and 900 employees.
All the three businesses reported healthy financials with collective business of USD 530 million in the previous 12 months ended in June 2020.
Bakelite, regarded as first synthetic plastic, Durite, Cellobond and Resonance are some brands and trademarks of Phenolic Specialty Resins business and formaldehyde-based products of the European Forest Products such as medium density fiberboard (MDF), particle board among others which will now be handled by Investindustrial and Black Diamond.
"This sale strengthens our balance sheet, while maintaining a strong specialty chemical portfolio going forward. I want to thank our associates within our Phenolic Specialty Resins, Hexamine and European-based Forest Products Resins businesses for their many contributions and wish them well going forward.”, said Craig Rogerson, President and CEO, Hexion.
About Black Diamond
Black Diamond is a leading investment firm founded in 1995 with over USD 8 billion assets under management across complementary private equity and credit platforms operating from offices in Greenwich, CT and London, UK.
Investindustrial, founded in 1990, is a leading European group of independently managed investment, holding and advisory companies with Euro 11 billion of raised fund capital.