COLUMBUS, OH - Hexion Inc. announced that it has entered into a definitive agreement to sell its Phenolic Specialty Resin, Hexamine and European-based Forest Products Resins businesses for approximately $425 million to Black Diamond and Investindustrial. Together, these businesses posted sales of approximately $530 million for the last 12 months ended June 30, 2020. The transaction includes approximately 900 employees and 11 manufacturing facilities globally.
The company expects to use the sale proceeds to invest in its business and further reduce its debt. The transaction is intended to close in the first quarter of 2021, subject to regulatory approvals and other customary closing conditions.
Commenting on the transaction, Craig Rogerson, Chairman, President and Chief Executive Officer, said, “We continue to strategically manage our portfolio, providing us the ability to further strengthen our balance sheet and maintain a strong business going forward. As we proceed, we will leverage our differentiated technology and global manufacturing footprint to serve the diversified customers of our remaining businesses. On behalf of everyone at Hexion, I would like to thank our associates within our Phenolic Specialty Resins, Hexamine and European-based Forest Products Resins businesses for their many contributions. I am confident they will have exciting opportunities ahead.”
Black Diamond and Investindustrial added, “We are pleased to acquire these strategic assets as these businesses boast globally recognizable brands and trademarks, including Bakelite®, Durite ™, Cellobond™ and Resonance™, as well as world-class facilities and a leading research and development and technical service platform. Black Diamond and Investindustrial have successfully partnered in the past on their collective investment in Polynt/Reichold, and we are excited to be working together again. Finally, Black Diamond has prior experience investing in phenolic specialty resin businesses and looks forward to bringing that experience to the acquired businesses.”