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
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.