By TESS STYNES
Chemical maker TPC Group agreed to be taken private by
investment firms First Reserve Corp. and SK Capital Partners in
a deal valued at about $627 million.
Including net debt, the deal for the chemical company is
valued at about $850 million. It is expected to close in the
shareholders will receive $40/share, as anticipated by media
reports last month. Shares closed Friday at $39.59 and were
halted in recent premarket trading.
Through Friday's close, the stock is up roughly 20% since
reports of a potential deal emerged in late July.
First Reserve director Neil Wizel said the investment firm
plans to help TPC Group expand its core business to capitalize
on shale plays in North America and the resulting increase in
supply of natural gas and natural gas liquids.
We are very pleased to enter into this agreement with
First Reserve and SK Capital, and we believe this transaction
is in the best interests of TPC Group's stockholders,
said TPG chief executive Michael T. McDonnell.
We are committed to the execution of our near- and
long-term strategic initiatives and remain on schedule with our
TPC Group chairman Michael E. Ducey said TPC late last year
formed a special committee to review the company's strategic
and financial alternatives.
TPC Group was formerly known as Texas Petrochemicals.
Dow Jones Newswires