HOUSTON (Aug. 28, 2012)—TPC Group Inc. has entered into an $850 million merger agreement that, if approved, will take the raw materials supplier private.
TPC Group reached the deal with investment funds sponsored by First Reserve Corp. and SK Capital Partners. TPC shareholders will receive $40 for each share of common stock, which the firm said represents a 20-percent premium over TPC Group's closing stock price on July 24, the last day the price was unaffected by reports the company was being acquired.
The firm late last year formed a special committee to conduct a review of strategic and financial alternatives available to TPC, leading to the proposed merger.
Thus far, stockholders representing about 22 percent of TPC Group's outstanding share have agreed to vote in favor of the transaction, according to the company. TPC's board of directors has approved the agreement and the firm expects to hold a special shareholder meeting to vote on the proposed merger. The deal also is subject to antitrust clearances and other customary closing conditions. Closing is expected during the fourth quarter.
TPC provides products derived from niche petrochemical raw materials to a variety of markets, including synthetic rubber, fuels, plastics and surfactants. Headquartered in Houston, the company has facilities throughout Texas and a product terminal in Lake Charles, Louisiana.