Hexion Specialty Chemicals is a producer of binder, adhesive, coating and ink resins for industrial applications. It is said to be the world's largest producer of thermosetting resins, with sales of around $6bn (2008) across various end-markets and geographies. It is headquartered in Columbus, Ohio, US and employs around 6,800 people.
History
The company was formed through the combination of privately owned Borden Chemical, Bakelite, Resolution Performance Products and Resolution Speciality Materials in 2005.
Hexion/Huntsman merger
On 15 December 2008, Huntsman settled for $1bn (€750m) to end its merger deal with Hexion, but the legal action against Credit Suisse and Deutsche Bank remains active.
In addition, Hexion and its parent private equity firm Apollo Global Management will have to pay Huntsman at least half of the damages on or before the end of 2008, with the balance expected to be settled in end-March 2009 at the latest.
On 28 October 2008, Huntsman said in a statement that Credit Suisse and Deutsche Bank have refused to fund the merger between Hexion and Huntsman, barring the scheduled conclusion of the deal.
Also in October 2008, Huntsman stockholders agreed to make an additional $217m (€174m) commitment to the company upon completion of its Hexion Specialty Chemicals merger.
Also, affiliates of Hexion’s parent company, Apollo Management agreed to make an additional cash equity investment of $210m in Hexion.
The additional $210m Hexion investment is conditional on the closing of the merger and the additional $217m investment by certain Huntsman stockholders.
On 2 October 2008, Hexion Specialty Chemicals said that US regulators had cleared its $10.6bn (€7.5bn) merger with Huntsman.
In July 2008, the European Commission (EC) approved the proposed acquisition of Huntsman by Hexion on the condition that the latter divests its epoxy resins production and R&D facilities in Germany and the US.
In June 2008, Huntsman rejected claims by Hexion Specialty Chemicals and Apollo in a US lawsuit to negate their proposed merger.
Hexion said that it had sued Huntsman, alleging that their $10.6bn (€6.8bn) merger would produce an insolvent business.
In April 2008, Hexion Specialty Chemicals and Huntsman extended the closing date of its $10.6bn (Euro7.2bn) merger to close around 4 July 2008.
In October 2007, shareholders of Huntsman voted to approve its merger agreement with Hexion Specialty Chemicals.
The deal was first announced in July 2007.
Please see Huntsman.
More company movements
In January 2009, the proposed sale of Hexion Specialty Chemicals' specialty epoxy resins business to Spolchemie was cancelled. The deal had been contingent on the merger between Hexion and Huntsman going ahead, but that deal was terminated in December 2008.
Hexion currently operates in two primary segments: Adhesive and Structural and Coating.
Adhesive and Structural
Main products
Formaldehyde based phenolic and amino resins;
Epoxy resins and intermediates;
Composite resins (UPR and epoxy);
Phenolic coated substrates (sand and ceramic); and
Moulding compounds.
Coating
Main products
Epoxy resins;
Acrylic resins;
Polyester resins;
Alkyd resins;
Inks resin vehicles and additives; and
Versatic acids and derivatives.
Hexion
Strategy & Financial Highlights
Hexion will focus on developing new products that will make it more competitive; remaining aware of competition from other chemical companies; competition from producers of materials that are substitutes for formaldehyde-based resins that could lead to declines in its net sales; concentrate on acquisitions and joint ventures that it has pursued and may present unforeseen integration obstacles and costs, increase its leverage and negatively impact its performance; and further concentrate on its growth strategy. (Edited from: 10-K annual report) ICIS also provides you with key financial data listed in table form.
More about Hexion Strategy & Financial Highlights
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