Hexion Holdings to be acquired by American Securities
Hexion Holdings Corporation has announced a definitive agreement to be acquired by affiliates of American Securities for USD 30.00 (EUR 26.50) 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 Corporation, shareholder and regulatory approvals and satisfaction of other customary closing conditions.
Holders of a majority of the outstanding Hexion Holdings shares have agreed to support the transaction pursuant to voting agreements entered into in connection with the transaction.
Hexion Holdings net sales for the year-ended December 31, 2020 were USD 2.5 billion (EUR 2.2 billion). Pro forma net sales for the same period, reflecting the sale of the Company’s Epoxy Business, would have been approximately USD 1.4 billion (EUR 1.2 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.
“Hexion Holdings has a bright future”
Commenting on the transaction, Craig Rogerson, Chairman, President and Chief Executive Officer, said: “This transaction, along with the pending sale of our Epoxy Business, is the conclusion of a comprehensive evaluation of strategic actions aimed at maximising 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. 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.”
