The Columbus-based chemical company Hexion Holdings has agreed to be acquired by the New York private equity firm American Securities.
American Securities will pay $30 a share for Hexion. The company did not say how many shares were outstanding, or the total value of the deal.
The deal follows Hexion’s announcement that it will sell its epoxy business to Westlake Chemical Corp. for $1.2 billion. At the time, Hexion said it planned to take the remainder of the company public. The American Securities deal ends that plan.
Hexion, which traces its roots to the former Borden Chemical Co., employs about 325 workers at its Downtown office at 180 East Broad St., its only Ohio operation. After spinning off its epoxy business, the company will operate 27 manufacturing facilities globally with approximately 1,300 employees.
Hexion’s sales last year were $2.5 billion. Without the epoxy business, sales would have been approximately $1.4 billion.
Not including the epoxy business, Hexion produces adhesives and materials for the engineered wood industry and other specialty materials.
“This transaction, along with the pending sale of our epoxy business, is the conclusion of a comprehensive evaluation of strategic actions aimed at maximizing value for our shareholders and best positioning the company for long-term growth,” said Hexion President and CEO Craig Rogerson in a news release announcing the deal.
Hexion said the spinoff and sale would impact Columbus employees, but did not provide details.
“As part of the sale of our epoxy business to Westlake, we would expect some associates to be part of the transaction. Hexion Holdings expects to remain a large Columbus-based employer,” a company spokesperson said in an email.
Scott Wolff, a managing director of American Securities, said American Securities is “thrilled” to acquire Hexion.
Hexion “is well-aligned with global megatrends, including safety and sustainability requirements and regulations, population growth, and household formation,” Wolff said in a news release.
Both the sale of Hexion’s epoxy business and the acquisition by American Securities are expected to take place in the first half of 2022.