Private equity group Apollo Management has managed something that should make it the envy of other financial and strategic investors in the chemicals and plastics industry. It is combining four assets acquired within as many years and plans to list the merged company, Hexion Specialty Chemicals, shortly. The new world market leader for thermosetting resins, based at Columbus, Ohio / USA, will result from the impending merger of Borden Chemicals (Columbus, Ohio; www.bordenchem.com), Resolution Performance Products (RPP) and Resolution Specialty Materials (RPP) – in Europe both part of Resolution Europe (NL-3190 AN Hoogvliet; www.resolution.com) – with the newly acquired Bakelite (D-58609 Iserlohn; www.bakelite.de).

Hexion will have USD 4.1 bn in annual sales, 86 production sites in 18 countries and 7,000 employees. Its portfolio will join Borden´s binding and bonding resins, performance additives and formaldehyde, RPP´s epoxy resins, Versatic acid and derivatives and RSM´s coatings, adhesives, speciality polymer and ink raw materials with Bakelite´s phenolic and epoxy thermosetting resins and moulding compounds. All four firms are leaders in their markets, and according to ceo-designate Craig Morrison, have “complementary businesses with outstanding technologies and products, along with excellent synergies.”