Hexion Holdings Corp. recently announced that, as a result of its ongoing strategic review, it has entered into a definitive agreement to sell its epoxy-based Coatings and Composite businesses, which includes the epoxy specialty resins and base epoxy resins and intermediates product lines, for approximately $1.2 billion to Westlake Chemical Corp. The Epoxy Business generated total sales of approximately $1.5 billion for the 12 months ended September 30, 2021, and was reported within Hexion’s Coatings and Composites reportable segment.
The transaction includes approximately 1,300 associates and eight manufacturing facilities globally. The company expects to use the sale proceeds to further pay down debt and to invest in its business. The transaction is expected to close in the first half of 2022, subject to customary regulatory approvals and other closing conditions as well as prior Works Councils consultation.
“With the continued strong performance of our Epoxy Business, and after a comprehensive evaluation of strategic actions, our Board and management team have determined that this sale maximizes value for our shareholders and is in the best interests of all of our stakeholders,” said Craig Rogerson, chairman, president, and CEO. “Today’s announcement is aligned with our ongoing commitment towards creating value for our shareholders. Our associates in the Epoxy Business will be joining a leading global chemical manufacturer and we believe that the Epoxy Business will be well positioned going forward with Westlake as its new owner. On behalf of everyone at Hexion, I would like to thank our associates within our epoxy businesses for their many contributions over the years. I am confident they will have exciting opportunities ahead.”
Following completion of the transaction, Hexion will consist of its existing Adhesives and Versatic™ Acids and Derivatives product lines. The company reports that its management team and board of directors will continue to evaluate strategic value creation options, including a proposed initial public offering on the New York Stock Exchange.