Hexion Sells U.S. Gulf Coast Formalin Business, Accelerating Transformation Into Technology-Driven Cellulosic Solutions Leader

Strategic divestiture strengthens Hexion's focus on innovation, growth markets, and next-generation cellulosic materials while expanding Ancala's U.S. infrastructure platform

COLUMBUS, OH / ACCESS Newswire / December 4, 2025 / Hexion, a leading global producer of adhesives and performance materials and an American Securities portfolio company, announced today that it has sold its U.S. Gulf Coast formalin business to Ancala, a leading independent infrastructure manager. The sale includes facilities in Baytown, Texas; Luling, Louisiana; and Geismar, Louisiana, along with associated multi-year customer contracts. These facilities are some of the largest suppliers of methanol-based raw materials in the U.S. Gulf Coast. Financial terms of the transaction will not be disclosed.

As part of the transaction, Ancala has created Valentra to operate the sites. The company has been created with associates from the former division that operated the sites at Hexion. This structure ensures continuity for customers, safeguards service quality, and provides the new business with proven technical expertise and operational strength. Hexion will continue supplying formalin to customers in markets outside the U.S. Gulf Coast.

This transaction marks a defining step in Hexion's transformation into a global innovator of technology-driven, cellulose-based performance materials. Building on more than a century of chemical expertise, Hexion is applying advanced production technologies, bio-based chemistry, and AI-enabled manufacturing to create the next generation of sustainable materials and manufacturing systems. These solutions are increasingly critical in the growing industries that are reshaping the global economy, including building & construction, packaging, energy, transportation, and infrastructure. Each of these industries is being reshaped by the urgent need to improve material efficiency, secure renewable supply chains and decarbonize, challenges Hexion is solving today through advanced cellulose chemistry, precision manufacturing, and AI-driven optimization.

"With this transaction, Hexion is sharpening its position as a market leader in technology-enabled materials, while demonstrating our rapid progress and commitment to the company's evolution," said Michael Lefenfeld, President and CEO of Hexion. "By uniting our deep expertise with bio-based chemistries, precision manufacturing, and AI enablement, we're engineering solutions that outperform traditional materials in performance, economics, and sustainability. Our focus on high-value innovation positions Hexion at the center of a generational shift to cellulose-based materials. As global industries accelerate toward lower-carbon, higher-efficiency systems, this is where the next wave of growth and value creation will occur. Hexion intends to lead that shift."

Advisors to the transaction for Hexion included Morgan Stanley & Co. LLC, as financial advisor, and Kirkland & Ellis LLP, as legal advisor.

About Hexion
Hexion is a global leader in performance materials and industrial technologies, advancing the transition to renewable, cellulose-based solutions. Building on more than 150 years of chemical expertise, the company combines deep knowledge in chemistry, precision manufacturing, and AI-driven process innovation to engineer the next generation of sustainable materials. Hexion's products enable higher performance, efficiency, and circularity across construction, packaging, energy, automotive, and infrastructure markets; industries that are redefining the global economy through decarbonization, digitalization and sustainable performance. With a clear focus on innovation and resource efficiency, Hexion is shaping the future of materials science and helping customers unlock new competitive advantages. Learn more at www.hexion.com.

About American Securities

Founded in 1994, American Securities is a leading U.S. private equity firm that invests in North American companies, primarily in the industrial and B2B services sectors. With $23 billion under management, we partner with businesses generating $200 million to $2 billion in annual revenues. We combine deep sector expertise, differentiated insights and proven internal capabilities to serve as transformational partners that drive growth and build enduring value. Our investment philosophy emphasizes capital preservation through disciplined investing and hands-on engagement, paired with repeatable value creation processes and operational excellence. American Securities is based in New York with an office in Shanghai. For more information, please visit www.american-securities.com.

About Ancala

Ancala is a leading independent infrastructure manager that delivers infrastructure investment differently. We take a unique entrepreneurial and collaborative approach to consistently deliver results for our investors, the companies in which we invest and other stakeholders. For more information, please visit www.ancala.com

SOURCE: Hexion

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