Innospec said Monday that its board of directors has informed the board of US-based petrochemical firm TPC Group that Innospec has withdrawn its takeover bid to acquire the company.
"We have spent a great deal of time and effort studying the TPC business, and, while we still feel that it is a good fit with Innospec, we are unable to conclude a deal structure in a manner where we are totally satisfied with the value creation for our shareholders," said CEO Patrick Williams.
"As a result, we have reluctantly decided that it would be in our investors' best interests to withdraw our proposal. Our acquisition strategy has always been focused on delivering shareholder value, and we continue to pursue other opportunities which we hope will come to fruition in the coming months."
At the same time, the board of specialty chemicals group Innospec also declared a special dividend of $2/ share on each outstanding share of common stock of Innospec.
The special dividend will be paid on December 21, 2012, to shareholders of record at the close of business on December 14, 2012.
"Innospec is a very healthy business, generating strong cash flows," added Williams. "We have consistently stated that our strategy is to pursue growth both organically and through acquisitions and this strategy remains unchanged.
"And, while the termination of our preliminary proposal to acquire TPC is unfortunate, our board has decided to deliver on our commitment to return cash to shareholders in the form of a special dividend. Our decision to declare this dividend as a one-time exceptional dividend reflects our desire to continue to be positioned for acquisitions which will add shareholder value while our board considers its option to institute regular annual dividend and/or stock repurchases in the future."