US TPC receives takeover bid from Innospec

08 October 2012 14:30  [Source: ICIS news]

LONDON (ICIS)--TPC Group has received a takeover offer from specialty chemicals company Innospec, the Houston-headquartered chemicals firm said on Monday.

Innospec has made an offer of $44-46 (€33.88-35.42) per TPC share, to be paid in cash. Equity financing for the acquisition would be provided by US private equity firm Blackstone through its Blackstone Capital Partners VI fund.

In a statement, TPC said that it is in the process of evaluating the non-binding offer.

The offer is substantially higher than an earlier bid for the company, made by energy-focused private equity firm First Reserve and chemical industry-focused private investment firm SK Capital Partners.

The consortium made an offer of $40 per share for the company, with the deal understood to be worth around $850m including the net debt. TPC accepted the First Reserve-SK Capital bid on 27 August, and the deal had been expected to close in the fourth quarter of 2012.

The $40 per share offer price represented a premium of 20% on the closing price of TPC stock on 24 July, the last day before media reports of a possible takeover started to affect trading.

Listed on the Nasdaq exchange, Innospec produces specialty additives for the fuels market. TPC is the largest processor of C4 hydrocarbons in the US, according to an analyst with investment bank Oppenheimer.

($1 = €0.77)

By: Tom Brown
+44 208 652 3214

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