Hexion Specialty Chemicals, the world’s leading global source for thermoset resins, announced May 25 that it has reached a definitive agreement to acquire the German resins and formaldehyde business of ARKEMA GmbH.
Terms of the agreement were not disclosed. The transaction is subject to normal governmental reviews and is expected to close during the third quarter.
Based in the Leuna industrial park, located in east central Germany, the ARKEMA German resins and formaldehyde business manufactures formaldehyde and formaldehyde-based resins including urea-formaldehyde, phenol-formaldehyde and melamine-based resin systems. These resins are used to manufacture engineered wood panels including oriented strandboard, particleboard and medium-density fiberboard. The business also produces impregnation resins used to laminate decorative paper surfaces to wood products. The business employs 100 people and had 2006 revenues of approximately €101 million.
“The ARKEMA German resins and formaldehyde business is a tremendous fit for Hexion as we expand our forest product resins business to serve our global customer base,” said Joseph Bevilaqua, president of the company’s Phenolic & Forest Product Resins Division. “This acquisition will give us a strong position in Germany, the largest wood panels market in Europe, and ready access to growing markets in Eastern Europe. It also complements both our existing European presence and our leading positions in the Americas and the Asia-Pacific region.”
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