US WR Grace is willing to discuss sale to 40 North

HOUSTON (ICIS)–WR Grace is willing to discuss a sale to 40 North, after the private investment firm raised its bid to $65 per share earlier this week, the US-based catalyst producer said on Friday.

In a letter to 40 North principals David Millstone and David Winter, WR Grace’s CEO Hudson La Force said: “Grace’s opportunities for continued growth and value creation are strong, particularly as our end markets recover from the disproportionate displacement resulting from the Covid-19 pandemic.”

“Any transaction would need to be at a price level that reflects the full value of Grace for its shareholders,” he said.

In November, WR Grace outright rejected 40 North’s first proposal, arguing it undervalued the company.

40 North, a privately held investment firm that is part of Standard Industries, owns a 14.9% stake in WR Grace, making it a top shareholder.

Standard Industries describes itself as the world’s largest roofing and waterproofing manufacturer with other businesses that make building materials.

WR Grace said it intends to move quickly to provide 40 North with information that would support a full valuation of the company.

40 North did not immediately respond to a request for comment.

Thumbnail image shows caps, which are often made of polypropylene (PP). WR Grace’s catalysts are used to make PP. Photo by Shutterstock.

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