Volume 90 Issue 42 | p. 18 | Concentrates
Issue Date: October 15, 2012

TPC Gets A Rival Buyout Proposal

Department: Business
Keywords: butadiene, butene, specialty chemicals, mergers and acquisitions

TPC Group has received a nonbinding takeover proposal worth $44.00 to $46.00 per share from Innospec, which would get financing help from Blackstone Group. The deal would value TPC’s equity at as much as $720 million. TPC says it will begin negotiations with Innospec that could lead to a firm offer superior to the $40.00-per-share agreement that it signed with First Reserve and SK Capital in August. At least one major shareholder, Sandell Asset Management, complained that the $40.00 offer undervalued TPC. Sandell says it is pleased that TPC is negotiating for a better deal. Innospec and TPC have only modest business overlap. TPC processes mixed C4 streams into products such as butadiene and polyisobutylene. Innospec makes tetraethyl lead, other fuel additives, and specialty chemicals. Innospec CEO Patrick Williams says he believes that “TPC is a good strategic and synergistic fit with Innospec.”

 
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