Westlake Chemical Corporation (Houston, Texas, USA), a global manufacturer and supplier of materials and innovative products, has entered into a definitive agreement with Hexion Holdings Corporation (Columbus, Ohio, USA) to acquire Hexion’s global epoxy-based coatings and composites business, for approximately $1.2 billion. This epoxy-based business includes the epoxy specialty resins and base epoxy resins and intermediates product lines, according to Hexion.
Hexion’s epoxy business is an industry leader in the manufacture and development of specialty resins, coatings, and composites for a variety of industries, including high-growth and sustainability-oriented end-uses such as wind turbine blades and lightweight automotive structural components. In the twelve months that ended September 30, 2021, Hexion’s epoxy business earned net sales of approximately $1.5 billion.
With this transaction, which is anticipated to be completed in the first half of 2022 following customary closing conditions, Westlake will significantly expand its integrated business by adding a downstream portfolio of coatings and composite products to its leading chlorovinyls businesses. The transaction includes approximately 1,300 associates and eight manufacturing facilities globally where epoxy-based coatings and composite products are produced for highly diversified growing end-markets, such as wind energy, non-residential construction, industrial, electrical, automotive, and aerospace.
“Light-weighting is a critical feature for the manufacture of structural components for automobiles and for renewable energy, particularly the composite blades used by wind turbines, and epoxies are key ingredients for these sustainable products,” says Westlake president and chief executive officer (CEO) Albert Chao. “The industries served by Hexion Epoxy are very attractive to Westlake and the business is expected to be a synergistic addition to Westlake’s existing businesses. We look forward to welcoming the Hexion epoxy employees to the Westlake family and realizing the tremendous opportunities to grow the combined businesses.”
“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,” says Craig Rogerson, chairman, president, and CEO for Hexion. “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.”
Source: Westlake, www.westlake.com and Hexion, https://investors.hexion.com.