Hexion Specialty Chemicals To Purchase Coatings & Adhesives Business From The Rhodia Group

Columbus, OH - Hexion Specialty Chemicals, Inc., the world's leading producer of thermoset resins for industrial uses, announced today that it has signed a definitive agreement to purchase the decorative coatings and adhesives business unit of The Rhodia Group.

Terms of the agreement were not disclosed. Closing will occur upon successful completion of normal governmental reviews.

The Rhodia business had 2004 sales of approximately EUR 150 million, with about two-thirds in Europe and the rest in other global regions. The business produces emulsion and powder latexes, which are used in decorative paints and construction mortars; pressure sensitive adhesives and anti-foam agents, used in the converter labeling market and other applications; and acrylic resins used in specialty roof tile coatings and coating latexes in the Asian and Australian markets.

The business includes 8 production facilities and employs approximately 440 people. It will become part of Hexion's Coatings & Inks Division, a global leader in thermoset resins and materials serving diverse markets including coatings, inks and composites. The manufacturing facilities that will be acquired are located in Ribecourt and Bolbec, France; Leuna, Germany; Asua, Spain; Paulinia, Brazil; Clayton, The United Kingdom; Boxhill, Australia; and, Samutsakorn, Thailand.

"We are very excited about the complementary fit of these products with our existing product lines, in particular in the waterborne technologies area. We also look forward to welcoming the associates of this business to the Hexion team, once the transaction is complete," said Jeff Nodland, president of Hexion's Coatings & Inks Division.

SOURCE: Hexion Specialty Chemicals