Hexion Holdings announces plans to split into two independent companies

Hexion Holdings ("Hexion Holdings" or "Company") today announced its plan to split into two independent companies

Hexion Holdings expects that the HCC separation transaction will be carried out in the form of allocating 100% of HCC shares to the current holders of Hexion Holdings' common stocks and warrants.

Craig Rogerson, Chairman, President and CEO of Hexion, said: “Today marks the beginning of an exciting new chapter in Hexion’s 122-year history, and continues our focus on improving the company’s financial flexibility while creating long-term value for shareholders.

The company believes that this spin-off will bring significant benefits to the independent company, including: 

● Unique strategy and management focus on professional operations, R&D and growth priorities, including macroeconomic trend analysis and the implementation of financial goals most suitable for each business; 

● The capital structure, dividend policy and capital deployment strategy tailored to specific business models and growth strategies

● An investor base consistent with each company’s streamlined value proposition

Hexion Holdings maintains a strong momentum, in line with the market's growing demand for environmentally friendly construction and coatings 

After the separation, Hexion Holdings will include the company's existing adhesive and Versatic Acids™ and derivative product lines

As of December 31, 2020, Hexion Holdings has achieved historical net sales of US$2.

HCC has the advantage of expanding leadership and global influence

HCC will be composed of Hexion Holdings' previous basic and specialty epoxy product lines

With its senior management team located in Rotterdam, the Netherlands, HCC hopes to maintain a strong global influence

For the year ended December 31, 2020, HCC's total sales were approximately US$1.
1 billion
.
It is expected that HCC will maintain an appropriate debt level in the future
.
 

Experienced and tried-and-tested leadership

Craig Rogerson will continue to lead Hexion Holdings as chairman, president and chief executive officer
.
George Knight will continue to serve as Executive Vice President and Chief Financial Officer at Hexion Holdings
.
Ann Frederix is ​​currently the Senior Vice President of Coatings and Composites at Hexion Holdings and is expected to serve as the CEO of HCC
.
Joost Vierhout is currently the senior financial director of Hexion Holdings Global Epoxy and Versatics, and he is expected to serve as the chief financial officer of HCC
.

Extra details 

Hexion Holdings and HCC are expected to sign a shared service agreement that will require Hexion Holdings to provide HCC with certain services or functions that the two companies have historically shared, as well as one or more service-related business agreements
.
Hexion Holdings owns, manages, maintains, supports and uses certain shared operation services of HCC
.
 

The current goal of the HCC separation transaction is to be completed in the fourth quarter of 2021, subject to board approval, regulatory approval, and tax and legal procedures
.