Borden Chemical merges

Published 12:00 am Wednesday, June 22, 2005

Demopolis Times Staff Report

DEMOPOLIS -Borden Chemical, Inc., Resolution Performance Products LLC (RPP) and Resolution Specialty Materials LLC (RSM), completed their previously announced combination to form Hexion Specialty Chemicals, Inc., the world’s largest producer of thermosetting resins. Hexion also includes Bakelite AG, which Borden Chemical acquired in late April.

Craig O. Morrison, president and chief executive officer of Hexion Specialty Chemicals said his company is very excited about the merger.

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“We are pleased to complete the formation of Hexion Specialty Chemicals and are excited about the benefits our combined enterprise will bring to our customers,” Morrison said.

Hexion Specialty Chemicals will be headquartered in Columbus, Ohio and is owned by affiliates of the private investment firm Apollo Management; L.P.

Hexion Specialty Chemicals had pro forma 2004 annual net sales of $4.1 billion. The company has approximately 7,000 employees and will rank third among North American-based specialty chemical firms.

It has 86 manufacturing and distribution sites in 18 countries in the Americas, Europe and the Asia-Pacific region. It also has a broad range of products, technologies and technical services for the industrial marketplace.

The company’s major product areas include formaldehyde, epoxy and phenolic resins, molding

compounds, coating resins, acrylics, alkyds, polyester resins, versatic acids, ink resins and other

specialty products and formulations. These materials are used as bonding, binding and coating agents

in a diverse range of industries including the construction, transportation, electronics, printing, oilfield,

foundry, furniture, paints and engineered wood markets.

More information about Hexion Specialty Chemicals can be found at the company’s web site,

Borden Chemical had 48 manufacturing facilities in 9 countries, 2,400 associates and 2004 sales of $1.7

billion. The company was based in Columbus, Ohio. Apollo Management acquired Borden Chemical in August 2004.

RPP was based in Houston with operations in the United States, Europe and Asia. The company had 950 employees and 2004 sales of $996 million. Apollo acquired RPP from Shell Oil Company in November 2000.

RSM was formed from businesses acquired by Apollo Management from Eastman Chemical Company in

August 2004. The company was based in Houston with 2,100 employees and facilities in the U.S., Europe and China. They had 2004 annual sales of $768 million.

Bakelite was based in Iserlohn-Letmathe, Germany with 13 manufacturing facilities in Europe and Asia and 1,700

Employees. The company had 2004 sales of $699 million and was acquired by Borden Chemical in April 2005.