An investment subsidiary of Investindustrial VII and Black Diamond Capital Management, are to buy, on a 50/50 basis, Hexion PSR , a carved out division of global diversified chemicals company Hexion Inc.Hexion PSR is a global producer of phenolic specialty resins, engineered thermoset moulding compounds and merchant formaldehyde with a leading market position in Europe.
The consideration of USD425 million consists of USD335 million in cash and certain assumed liabilities with the remainder in future proceeds based on the performance of the company. The transaction is expected to close in Q1 2021. Together, the company’s businesses posted sales of approximately USD530 million for the last twelve months ended 30 June, 2020.
Following the successful working relationship between Investindustrial and Black Diamond in specialty chemicals with Polynt-Reichhold, the two firms make an ideal ownership combination to support Hexion PSR’s growth as a stand-alone company.