TPC Group, a leading C4 hydrocarbon processing firm formerly known as Texas Petrochemical, said Monday that it received a non-binding proposal to be acquired by specialty chemicals company Innospec.
As part of the proposal, Innospec is pursuing the acquisition of all of TPC Group's common shares for an all-cash purchase price in the range of $44-46 per share, representing an overall deal value of over $700 million.
The proposal is subject to certain conditions, including the securing requisite debt financing, completion of due diligence and receipt of internal approvals.
Equity financing for the proposed acquisition will be provided by Blackstone Capital Partners VI, L.P., managed by Blackstone on behalf of its private equity investors.
The TPC Group board of directors said it determined in good faith, after consultation with its independent legal and financial advisors, that this proposal could lead to a superior proposal.
As such, the board said it will carefully consider and evaluate the non-binding proposal from Innospec and its equity financing partner, and has authorized discussions and negotiations with them.
Moreover, TPC has already made arrangements to facilitate their due diligence review.
TPC said it does not anticipate disclosing any further developments unless the TPC Group board makes a decision, adding that there are no guarantees that negotiations will result in a deal.
As presently built, Innospec largely produces specialty additives for use in fuels.