Hexion’s epoxy unit is going to Westlake

Abstract

Hexion Holdings has agreed to sell its epoxy resins business to Westlake Chemical for $1.2 billion. The deal adds a twist to Hexion’s plan to split into two and puts more specialty chemicals into Westlake’s portfolio. Hexion’s epoxy business has annual sales of $1.5 billion. The company is a major producer of liquid epoxy resins and precursors such as epichlorohydrin and bisphenol A. The unit includes specialty epoxies used in adhesives, coatings, and composites and boasts of being the world’s largest producer of epoxy binders for windmill blades. In September, Hexion announced a plan to split in two. A new firm, comprising its adhesives unit and Versatic acids and derivatives franchise, which had total sales of $1.4 billion last year, would keep the Hexion name and have an initial public offering (IPO) on the New York Stock Exchange. Hexion said at the time that shares in the epoxy business would