Hexion acquires Rhodia's Latex business; Offer pending on Akzo Nobel's Ink and Adhesive Resins.

Hexion Specialty Chemicals Group, Columbus, OH, has signed an agreement to purchase the Latex business activities of Rhodia, Paris, France. Rhodia's Latex business includes latex dispersions and powders, and organic foam control agents. These products, which are developed and marketed by Rhodia Coatis, are primarily used in decorative paints, specialty mortars used in the construction industry, and liquid adhesives. The business is chiefly based in Western Europe but also has a presence in Asia, North America, and Latin America. It employs approximately 440 people worldwide. The sale of the latex business is part of Rhodia's plan to divest of activities considered non-strategic as it refocuses on its business portfolio.

In related news, Hexion Specialty Chemicals Group has made an offer to purchase Akzo Nobel's Ink and Adhesive Resins business. The offer involves all assets and all current employees of the business, which employs about 560 people and has its global headquarters in Maastricht, Netherlands, along with production sites in seven countries including China, the U.S., and New Zealand.

When completed, the deal will represent the first major divestment by Akzo Nobel since it announced plans to realign its Chemicals portfolio in 2005.

"The acquisition of Akzo Nobel's Ink and Adhesive Resins business demonstrates Hexion's continued commitment to leadership in the global ink and adhesive resins industry," said Jeff Nodland, President of Hexion's Coatings and Inks Division. "The combination with Hexion's existing businesses will strengthen and diversify our product capabilities and allow Hexion to meet more effectively the existing and emerging requirements of our customers."