- The $425 million deal includes $335 million in cash and assumed liabilities.
- The transaction is expected to close in Q1 2021.
- Hexion PSR is a global producer of phenolic specialty resins, thermoset molding compounds, and formaldehyde.
- Hexion PSR operates 11 manufacturing facilities and 3 R&D centers.
Transaction Overview
On September 28th, 2020, Investindustrial VII L.P and Black Diamond Capital Management announced a definitive agreement to acquire Hexion PSR, a division of Hexion Inc., for $425 million. The deal includes $335 million in cash and certain assumed liabilities, with the remainder based on the company's future performance. The transaction is expected to close in Q1 2021.
Company Profile
Hexion PSR is a global producer of phenolic specialty resins, engineered thermoset molding compounds, and merchant formaldehyde. The company holds a leading market position in Europe and operates 11 manufacturing facilities, 3 R&D centers, and 4 product support labs. Hexion PSR posted sales of approximately $530 million for the twelve months ending June 30, 2020.
Strategic Rationale
Investindustrial and Black Diamond have a history of successful collaboration in the specialty chemicals sector, notably with Polynt-Reichhold. This acquisition aims to leverage their combined expertise to support Hexion PSR's growth as a standalone company. The company has a well-diversified market presence and premium-price positioning in nearly all categories.
