Apollo Management, L.P., a private investment firm that recently announced an agreement to acquire Eastman Chemical’s CASPI line, including Eastman Resins, announced that it has signed a definitive agreement to acquire Borden Chemical, Inc., a leading supplier of thermoset and other high performance resins, adhesives and specialty chemicals. Borden Chemical also manufactures UV inks and colored materials that are sold under the trade name SpectraShield.
Included in the acquisition group are certain members of Borden Chemical management. The acquisition, with a purchase price of approximately $1.2 billion, including the assumption of outstanding debt, is subject to regulatory approval. The transaction is targeted to be completed in the third quarter.
Apollo Management is acquiring Borden Holdings, the parent of Borden Chemical, Inc., from BW Holdings LLC, an affiliate of Kohlberg Kravis Roberts & Co.
“We are very excited at the potential of partnering with Apollo Management, a knowledgeable and broad-based investor in the chemicals industry,” said Craig Morrison, president and CEO of Borden Chemical. “Given our operational momentum in recent years, we expect to continue with our current strategy and management team. The transition should have no impact on our relationships with our customers and suppliers, with whom we will continue to work closely and effectively, or on our employees. Our people have made important contributions to Borden Chemical's growth and progress, and with their support and dedication we anticipate our business will continue to prosper.”
“Borden Chemical is a world-class asset with an exceptional management team,” said Joshua Harris, a founding partner of Apollo. "We are supportive of management’s current strategy and are pleased to become a long-term investor in the company. We look forward to helping Borden expand its solid market position.”
Borden Chemical produces binding and bonding resins, performance adhesives, UV-curable coatings and the building-block chemical formaldehyde for various wood and industrial markets through its network of 48 manufacturing facilities in nine countries. In 2003, the company had annual sales of $1.4 billion and net income of $23 million. Based in Columbus, OH, the company has 2,400 employees worldwide.
Apollo Management, L.P., founded in 1990, is among the most active and successful private investment firms in the U.S. in terms of both number of investment transactions completed and aggregate dollars invested. Since its inception, Apollo has managed the investment of an aggregate of approximately $13 billion in equity capital in a wide variety of industries, both domestically and internationally.