BDA Advises Hexion On Sale of China Phenolic Resins Plant To Red Avenue

BDA Advises Hexion on Sale of China Phenolic Resins Plant to Red Avenue
New York, NY, March 08, 2021 --(PR.com)-- BDA Partners is pleased to announce that its client,
Hexion Inc., has sold its China phenolic resins plant to Red Avenue New Materials Group Co. Ltd. (“Red
Avenue”), a publicly listed Chinese company providing diversified new materials for electronics,
environmental protection, tire, and auto markets. Terms of the transaction were not disclosed.
Hexion’s China phenolic resins plant was part of Hexion’s global Phenolic Resins (PSR) division, which
has separately been acquired by Black Diamond and Investindustrial. The PSR business is an established
technology leader with a long track record for quality and reliability.
The China phenolic resins plant was built in Zhenjiang, Jiangsu Province, as a greenfield project, which
was started in 2012 and completed in 2016. The facility was constructed in line with Hexion’s global
standards, enjoys convenient access to suppliers and customers, and is well regarded in the region for its
unmatched product quality and high EHS standards.
BDA was the exclusive financial advisor to Hexion on the transaction.
Red Avenue (market cap over US$3.4bn as of February 2021) is listed on the Shanghai Stock Exchange,
making a range of high performance chemical products, with a strong position in the new material
industry. Hexion’s Chinese phenolic resins business fits well the Red Avenue development strategy for
capacity expansion, and represents a key add-on in the value chain.
Euan Rellie, Managing Partner and co-founder, BDA Partners, said: “We’re happy to have helped Hexion
secure the ideal buyer for its Chinese phenolic resins plant. World-leading corporates regularly ask BDA
to manage divestitures in Asia. We have a particularly strong track record in the chemicals sector.”
Jeffrey Wang, Partner, Co-Head of Shanghai, BDA Partners, said: “Once again, we have proven that we
can navigate challenging markets to achieve good outcomes for our clients. BDA wishes Red Avenue
great success with its acquisition.”
BDA deal team:

Euan Rellie, Managing Partner, New York
Jeffrey Wang, Partner, Co-Head of Shanghai, Shanghai
Alex Ditchfield, Director, New York
Zac Chartier, Vice President, New York
Fengnu Ge, Associate, Shanghai
Stephen Etna, Associate, New York
About Hexion
Based in Columbus, Ohio, Hexion Inc is a global leader in thermoset resins. Hexion serves the global
adhesive, coatings, composites and industrial markets through a broad range of thermoset technologies,
specialty products and technical support for customers in a diverse range of applications and industries.
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Additional information about Hexion and its products is available at www.hexion.com.
About Red Avenue

Red Avenue New Materials Group Co. Ltd. (market cap US$3.4bn) is based in Shanghai and trades on
the Shanghai Stock Exchange. It manufactures and sells diversified new material products in China and
internationally. The company offers tackifying resins, phenol-formaldehyde reinforcing products,
adhesion promoter resins, bonding agents, curing resins, and additives. It also distributes various
chemical products. The company was founded in 1999. Additional information about Red Avenue and its
products is available at www.rachem.com.
About BDA
BDA Partners is the global investment banking advisor for Asia. We are a premium provider of
Asia-related advice to sophisticated clients globally, with over 20 years’ experience advising on
cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in
New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore,
Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals,
Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn
our clients’ trust by delivering insightful advice and outstanding outcomes.
BDA Partners has strategic partnerships with William Blair, a premier global investment banking
business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with
US$150bn of assets.
US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc., a broker-dealer
registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc. is a member of the
Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorised and
regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd. is licensed
and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated
activities to professional investors. www.bdapartners.com
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Contact Information:
BDA Partners
Euan Rellie
212-265-5300
Contact via Email
www.bdapartners.com
Online Version of Press Release:

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BDA Advises Hexion on Sale of China Phenolic Resins Plant to Red Avenue

BDA was the exclusive financial advisor to Hexion on the transaction.

BDA deal team:

About Red Avenue

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