8 March 2021
BDA advises Hexion on sale of China phenolic resins plant to Red Avenue
Divested China phenolic resins plant to Red Avenue
BDA Partners is pleased to announce that its client, Hexion Inc, has sold its China phenolic resins plant to Red Avenue New Materials Group Co Ltd (“Red Avenue”), a publicly listed Chinese company providing diversified new materials for electronics, environmental protection, tire, and auto markets. Terms of the transaction were not disclosed.
Hexion’s China phenolic resins plant was part of Hexion’s global Phenolic Resins (PSR) division, which has separately been acquired by Black Diamond and Investindustrial. The PSR business is an established technology leader with a long track record for quality and reliability.
The China phenolic resins plant was built in Zhenjiang, Jiangsu Province, as a greenfield project, which was started in 2012 and completed in 2016. The facility was constructed in line with Hexion’s global standards, enjoys convenient access to suppliers and customers, and is well regarded in the region for its unmatched product quality and high EHS standards.
BDA was the exclusive financial advisor to Hexion on the transaction.
Red Avenue (market cap over US$3.4bn as of March 2021) is listed on the Shanghai Stock Exchange, making a range of high performance chemical products, with a strong position in the new material industry. Hexion’s Chinese phenolic resins business fits well the Red Avenue development strategy for capacity expansion, and represents a key add-on in the value chain.
Euan Rellie, Managing Partner and co-founder, BDA Partners, said: “We’re happy to have helped Hexion secure the ideal buyer for its Chinese phenolic resins plant. World-leading corporates regularly ask BDA to manage divestitures in Asia. We have a particularly strong track record in the chemicals sector.”
Jeffrey Wang, Partner, Co-Head of Shanghai, BDA Partners, said: “Once again, we have proven that we can navigate challenging markets to achieve good outcomes for our clients. BDA wishes Red Avenue great success with its acquisition.”
Based in Columbus, Ohio, Hexion Inc is a global leader in thermoset resins. Hexion serves the global adhesive, coatings, composites 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 about Hexion and its products is available at www.hexion.com.
About Red Avenue
Red Avenue New Materials Group Co Ltd (market cap US$3.4bn) is based in Shanghai and trades on the Shanghai Stock Exchange. It manufactures and sells diversified new material products in China and internationally. The company offers tackifying resins, phenol-formaldehyde reinforcing products, adhesion promoter resins, bonding agents, curing resins, and additives. It also distributes various chemical products. The company was founded in 1999. Additional information about Red Avenue and its products is available at www.rachem.com.
BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with over 20 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.
BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets.
US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc., a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc. is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorised and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd. is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors. www.bdapartners.com
Divested Epolin Chemicals to Chroma Color
Divested Asian electronic cleaning chemicals business to Nippon Kayaku
Divested Chrysal International to OAT Agrio Ltd
Divested plant health business in Japan to Nisso
Equity capital raise and new Asian partnerships
Divested Indian emulsion polymer business to Apcotex Industries
Cristal (Saudi Arabia) agreed to acquire Jiangxi Tikon TiO2 (China)
Sold stake in An Giang Plant Protection to Standard Chartered
Divested a majority stake to Navis Capital Partners
Acquired the organic pigment business of Jiangsu Multicolor
Divested Continuous Filament Mat business to Stonewood Capital
Divested Shanghai subsidiary to CPIC, China
Acquired Changzhou Pulanna Coating Co Ltd
Divested Kiian SpA, a specialty inks manufacturer, to Wise and Alcedo
Divested building materials business of Henkel Korea to Mapei of Italy
Acquired Lablndia distribution business in India
Divested Eliokem to Omnova
Divested Clariant Masterbatches (Korea) Ltd to Dong Bang Chemical
Divested Arkema Guangzhou Chemicals to Hoe Seng Co
Divested Coates Toners to MBO Team