First Reserve, SK Capital to buy chemicals firm TPC for $850 mn

US specialty chemical maker TPC Group, yesterday agreed to sell itself to private equity firms First Reserve Corporation and SK Capital Partners, in a deal valued at $850 million.

First Reserve and SK Capital have offered to pay $40 a share in cash, representing a 20-per cent premium to TPC's closing stock price on Friday.

The deal, which is expected to close in the fourth quarter, is valued at about $850 million including debt.

TPC said that it plans to hold a special shareholder meeting to vote on the proposed deal and shareholders representing about 22 per cent of its outstanding stock have agreed to vote in favour of the sale.

With an operating history of over 68 years, Houston, Texas-based TPC is a leading producer of value-added products derived from niche petrochemical raw materials, such as C4 hydrocarbons, and provider of critical infrastructure and logistics services along the Gulf Coast region. 

The company sells its products into a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuels, lubricant additives, plastics and surfactants.