Apollo to buy Borden for $1.2bn

The New York firm has agreed to acquire Borden Chemical from buyout house Kohlberg Kravis Roberts in its second specialty chemical purchase in little more than a month.

New York-based private equity firm Apollo Management has agreed to acquire Borden Chemical for $1.2 billion (€977 million) from BW Holdings, an affiliate of New York-based private equity firm Kohlberg Kravis Roberts.

Borden, based in Columbus, Ohio, is a manufacturer of resins, performance adhesives, coatings and other specialty chemicals for various wood and industrial markets. The company currently operates 48 facilities in nine countries. In 2003, Borden reported annual sales of $1.4 billion and net income of $23 million. The company had filed in May to go public in the third quarter and has since withdrawn its registration.

The purchase is the second specialty chemicals purchase Apollo has made in little over a month. At the beginning of June, the firm agreed to acquire the coatings, adhesives, specialty polymers and inks (CASPI) segment from Eastman Chemical for $215 million.

KKR also made headlines last week when it announced it would sell off more than half of its stake in PanAmSat, the US satellite operator it agreed in April to buy for $3.55 billion, to The Carlyle Group and Providence Equity Partners. The two firms had also bid for PanAmSat. The transaction will still be the largest to date in the US.