Hexion exits European solvent-coating business

The deal, the value of which has not been disclosed, includes the entire Hexion solvent-borne coatings business and its production facility in Cola di Lazise, Italy.

The disposal marks Hexion’s exit from the European solvent-borne coatings market. However, the company said in a statement that it intends to maintain its presence in Europe in the waterborne, powder coating and coating resins markets.

The acquisition is expected to be completed before the end of this month. According to Hexion, Tenax plans to continue to operate the Cola di Lazise plant and take over employment of the 44 staff currently working in the business unit.

“We are pleased to be able to sell the business and the Cola di Lazise site operations to a buyer that intends to continue to operate the business and offer continuation of employment to site associates,” said Julia Harp, president, coatings & inks division for Hexion.

Hexion Specialty Chemicals is the world’s largest producer of thermosetting resins and posted sales in 2008 of $6.1 billion. The company is owned by private investment group Apollo Management.

Last week, Hexion announced plans for a $700m debt offering, which it plans to use to repay $500 million of US term loans under its existing $2.2bn senior secured credit facilities and to provide additional liquidity.

Tenax is headquartered close to Verona in Italy. The company is a manufacturer of specialist abrasives, coatings and resin systems for applications including stone working and repair.

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