US chemical company Hexion said it agreed to sell its phenolic specialty resin, hexamine and European-based forest-products resins businesses to investment firm Black Diamond Capital Management and London-based private equity group Investindustrial for about $425m.
The chemical maker said the consideration consists of $335m in cash and certain assumed liabilities, with the remainder in performance-based future proceeds.
Hexion said the business, which has roughly 900 employees and 11 manufacturing plants around the world, generated sales of about $530m for the 12 months ended on 30 June.
The company said it will use proceeds from the sale, which it expects to complete in the first quarter of 2021, to invest in its business and reduce debt.
Source: Private Equity News
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