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 (\u201cRed Avenue\u201d), a publicly listed Chinese company providing diversified new materials for electronics, environmental protection, tire, and auto markets. Terms of the transaction were not disclosed.<\/p>\n\n\n\n
Hexion\u2019s China phenolic resins plant was part of Hexion\u2019s 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.<\/p>\n\n\n\n
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\u2019s 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.<\/p>\n\n\n\n
BDA was the exclusive financial advisor to Hexion on the transaction.<\/p>\n\n\n\n
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\u2019s Chinese phenolic resins business fits well the Red Avenue development strategy for capacity expansion, and represents a key add-on in the value chain.<\/p>\n\n\n\n
Euan Rellie, Managing Partner and co-founder, BDA Partners, said: \u201cWe\u2019re 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.\u201d<\/p>\n\n\n\n
Jeffrey Wang, Partner, Co-Head of Shanghai, BDA Partners, said: \u201cOnce 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.\u201d<\/p>\n","protected":false},"featured_media":10786,"template":"","class_list":["post-10785","transaction","type-transaction","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\n