Westlake Chemical closes $1.2bn acquisition of Hexion’s epoxy business
Westlake Chemical Corporation, an American manufacturer and supplier of petrochemicals, polymers, and fabricated building products, has wrapped up the previously announced $1.2 billion acquisition of the global epoxy business of Ohio-based chemical company Hexion.
The all-cash deal was announced in November 2021.
The epoxy business, which is based in Rotterdam, The Netherlands, has been engaged in the manufacturing and development of specialty resins, composites, and coatings for a range of industries. It has been renamed Westlake Epoxy.
Albert Chao — President and CEO of Westlake Chemical said: “With this transaction, Westlake will significantly expand its integrated business by adding a leading downstream portfolio of coatings and composite products.
“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.
“The industries served by Westlake Epoxy are very attractive and the business is expected to be a synergistic addition to Westlake’s existing businesses.”
The fully-integrated Westlake Epoxy business will include upstream base epoxy resins and intermediates, which are supplied as liquid or solid epoxy resins. It also includes downstream specialty epoxy resins, which are used in composites and coatings.
Following the closing of the deal, Hexion’s business will consist of its existing adhesives and Versatic acids and derivatives product lines.
Craig Rogerson — Chairman, President, and CEO of Hexion said: “We are pleased to complete the sale of our Epoxy Business as part of our strategic efforts to maximize value for our shareholders and take actions that are in the best interests of all of our stakeholders.”