Billion dollar chemical buyout

Apollo Management, a private investment firm, has signed an agreement to acquire Borden Chemical, a supplier of thermoset and other high performance resins, adhesives and specialty chemicals.

The acquisition, with a purchase price of approximately $1.2 billion, including the assumption of outstanding debt, is subject to regulatory approval and other customary closing conditions. The transaction should be completed in the third quarter.

Borden Chemical produces binding and bonding resins, performance adhesives, UV-curable coatings and the building-block chemical formaldehyde for various wood and industrial markets through its network of 48 manufacturing facilities in 9 countries.

In 2003, the company had annual sales of $1.4 billion and net income of $23 million. Based in Columbus, OH, the company has 2,400 employees worldwide.

In May this year, Borden filed a registration statement with the US Securities and Exchange Commission announcing its intent to conduct an initial public offering of common stock in the third quarter. With the agreement for sale of the company, that activity has been suspended.