Momentive Specialty Chemicals Inc. Announces Agreement to Sell Its North American Composites and Coatings Business to Investindustrial
COLUMBUS, Ohio – (April 18, 2011) - Momentive Specialty Chemicals Inc., and PCCR USA, Inc., announce today that the companies have signed a definitive agreement for Momentive to sell its North American composites and coating resins business to PCCR USA, a subsidiary of Investindustrial, a European investment group with operations in specialty chemicals , resins and intermediates.
Terms of the agreement were not disclosed. The transaction is subject to customary conditions including governmental reviews.
The Momentive business to be purchased by PCCR includes manufacturing locations in Carpentersville, Ill., Ennis, Texas, Forest Park, Georgia, and Lynwood, Calif. The business had 2010 sales of approximately $230 million and employs 225 people, who it is anticipated will join PCCR at closing.
“This business is an excellent fit with our existing operations in specialty chemicals and will provide us with a significant new presence in the North American marketplace in this industry,” said Andrea C. Bonomi, Chairman of Investindustrial.
Advisors to Momentive on the transaction are The PrinceRidge Group LLC as transaction advisor, and O'Melveny & Myers LLP as legal advisor. Advisors to Investindustrial on the transaction are Lincoln International LLC for M&A, Duff & Phelps Securities LLC for financing, and DLA Piper LLP for legal.
Investindustrial is an independent investment group with €2.1 billion (US$3.0 billion) in assets under management with offices in Europe, United States and Asia. Since its inception in 1990, it has successfully owned and developed several chemicals companies. It currently owns Polynt, a leader in intermediate polymers and resins with more than €600 million (US$850 million) of revenues in 2010 and manufacturing presence in Europe and China. Additional information is available at www.investindustrial.com
About Momentive Specialty Chemicals Inc.
Based in Columbus, Ohio, Momentive Specialty Chemicals is the global leader in thermoset resins. Momentive serves the global wood and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. Additional information is available at www.momentive.com
About the new Momentive
Momentive Performance Materials Holdings LLC is the ultimate parent company of Momentive Specialty Chemicals Inc. and Momentive Performance Materials Inc. (collectively, the “new Momentive”). The new Momentive is a global leader in specialty chemicals and materials, with a broad range of advanced specialty products that help industrial and consumer companies support and improve everyday life. The company uses its technology portfolio to deliver tailored solutions to meet the diverse needs of its customers around the world. The new Momentive was formed in 2010 through the combination of entities that own Momentive Performance Materials and Hexion Specialty Chemicals. The company is controlled by investment funds affiliated with Apollo Global Management, LLC.
Forward Looking Statements
Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward looking statements may be identified by the words“believe,” “expect,” “anticipate,” “project,” “plan,” “estimate,” “will” or “intend” or similar expressions. Forwardlooking statements reflect our current views about future events and are based on currently available financial, economic and competitive data and on our current business plans. Actual results could vary materially depending on risks and uncertainties that may affect our markets, services, prices and other factors as discussed in our 2009 Annual Report on Form 10-K and in our other filings with the Securities and Exchange Commission (SEC). Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: economic factors such as the current credit crises and economic downturn and their related impact on liquidity and the industry sectors we serve, or an interruption in the supply of or increased pricing of raw materials; competitive factors such as pricing actions by our competitors that could affect our operating margins; and regulatory factors such as changes in governmental regulations involving our products that lead to increased manufacturing costs and environmental and legal matters as described in our 2010 Annual Report on Form 10-K and in our other reports filed with the SEC.
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Momentive Specialty Chemicals Inc.