Innospec launches $721-mn bid for rival specialty chemicals maker TPC Group

US specialty chemicals maker TPC Group Inc yesterday said  that it has received a $721-million takeover proposal from rival specialty chemical maker Innospec Inc, topping an August offer made by two private equity firms.

Private equity firms First Reserve Corp and SK Capital Partners had offered to buy  Houston-based TPC - the largest producer of a chemical used in synthetic rubber, for $40 a share or $627.2 million.

The board of TPC had approved the deal and had earlier said that the transaction would be in the best interest of shareholders.

Innospec could offer $44 to $46 per share in cash, TPC said in a statement, and added that the proposal is subject to certain conditions, including, securing requisite debt financing, completion of due diligence and receipt of internal approvals. Funding for the proposed acquisition will be provided by Blackstone Capital Partners.

TPC said it is evaluating the non-binding offer and will allow Innospec to conduct  due diligence.

Founded in 1944, TPC, formerly known as Texas Petrochemicals, is a global leader providing a diverse range of products to global chemical and petroleum-based companies.