Investindustrial, Black Diamond Capital team up again to agree up to $425m Hexion unit carve-out

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Investindustrial and Black Diamond Capital Management have agreed a $425m carve-out of chemical company Hexion’s phenolic resins unit.

Hexion PSR also makes engineered thermoset molding compounds and merchant formaldehyde, with a leading market position in Europe.

The $425m deal consists of $335m in cash and certain assumed liabilities, with the remainder in future proceeds based on the performance of the company.

Hexion PSR posted sales of about $530m for the twelve months to the end of June.

Investindustrial and Black Diamond previously invested together in specialty chemicals with Polynt-Reichhold.

A statement from the firms said, “We are pleased to acquire these strategic assets as these businesses boast globally recognizable brands and trademarks, including Bakelite, Durite, Cellobond, and Resonance, as well as world-class facilities and a leading research and development and technical service platform.

“Black Diamond and Investindustrial have successfully partnered in the past on their collective investment in Polynt-Reichhold and we are excited to be working together again, bringing also their prior experience from the unsaturated polyester resin sector.”

Black Diamond has about $8bn assets under management across  private equity and credit platforms, while Investindustrial is a leading European group of independently managed investment, holding and advisory companies with €11bn of raised fund capital.

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