The normally placid world of thermoset resins was rocked April 25 when Borden Chemical Inc. announced it is merging with three other firms and taking the combined $4 billion company public.
The new entity will be named Hexion Specialty Chemicals Inc. and will rank as the world's largest thermoset maker. Hexion - based in Columbus, Ohio - will employ 7,000 and operate 86 plants in 18 countries. About half of its $4.1 billion annual sales total will come from North America.
Hexion's components will be:
* Columbus-based Borden, a global leader in binding and bonding resins, performance adhesives and formaldehyde.
* Resolution Performance Products LLC of Houston, a leading maker of epoxy resins.
* Resolution Specialty Materials LLC of Houston, which makes coatings, adhesives and specialty polymers.
* Bakelite AG, an Iserlohn, Germany-based firm that ranks as a major supplier of phenolic and epoxy resins and compounds.
Borden, RPP and RSM all are owned by Apollo Management LP, a private investment firm in New York. Borden purchased Bakelite in April for $315 million in debt and cash.
Borden President and Chief Executive Officer Craig Morrison will hold those same titles with Hexion. RPP President and Chief Operating Officer Kip Smith will serve as president of Hexion's epoxy and phenolic resins unit.
No date has been set for the IPO, which is expected to raise as much as $800 million.
Although long associated with the dairy market, Borden no longer is active in that industry. It began exiting the dairy field after being purchased and taken private by Kohlberg Kravis Roberts investment firm in 1995. KKR then sold Borden to Apollo in July 2004.
Borden, which has public debt, lost almost $180 million last year on sales of $1.7 billion.