MOSCOW (MRC) -- Hexion Inc, a major American manufacturer of phenol and bisphenol A (BPA), has announced that it has completed the sale of its Phenolic Specialty Resin, Hexamine and European-based Forest Products Resins businesses for approximately USD425 million to Black Diamond and Investindustrial, according to BusinessWire.
The consideration consists of USD335 million in cash and certain assumed liabilities with the remainder in future proceeds based on the performance of the business.
The company expects to use the sale proceeds to invest in its business and further reduce its debt.
Commenting on the transaction, Craig Rogerson, Chairman, President and Chief Executive Officer, Hexion, said: “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.”
The transaction was announced in September 2020. Credit Suisse acted as Hexion’s financial advisor, Paul, Weiss, Rifkind, Wharton & Garrison LLP as lead legal counsel, and Freshfields Bruckhaus Deringer as European counsel.
As MRC informed before, Hexion shut down its BPA plant in the Netherlands for scheduled maintenance in early November, 2020. The turnaround at this plant with a capacity of 120,000 mtyear of BPA, located in Pernis, the Netherlands, lasted until the end of November, 2020.
Bisphenol A is used as a hardener in the production of plastics, as well as plastic-based products. It is one of the key monomers in the production of epoxy resins and polycarbonate (PC).
According to MRC's ScanPlast report, overall estimated consumption ofPC granules grew in the Russian market by 27% year on year in January-February 2021 (excluding imports and exports to/from Belarus) to 16,000 tonnes, compared to 12,600 tonnes a year earlier.
Hexion Inc., formerly Momentive Specialty Chemicals Inc., is a chemical company based in Columbus, Ohio. It manufactures thermosetting resins and related technologies and specialty products. Hexion has two divisions: the epoxy, phenolic and coating resins division and the forest products division.