W. R. Grace Accepts 40 North Final Offer

27.04.2021 - W. R. Grace has agreed to be taken over by Standard Industries Holdings, after the latter’s investment platform 40 North made a “best and final offer” for the specialty chemical company earlier this month. Its board of director unanimously approved the transaction, which is set to close in the fourth quarter of 2021, pending shareholders’ approval and customary conditions.

Following rejection of two “inadequate” offers of $65/share and $60/share by shareholder 40 North in January and last November respectively, Grace finally accepted $70/share in an all-cash transaction valued at approximately $7 billion. The deal includes Grace’s pending acquisition of Albemarle’s Fine Chemistry Services business for approximately $570 million, which was agreed last month.

“We are confident that our agreement with Standard Industries Holdings is the best path forward for Grace and our shareholders,” said its president and CEO Hudson La Force. “Standard’s $7 billion investment in Grace reflects their confidence in the significant growth opportunities we have and enables our shareholders to realize immediate value at a significant cash premium. This announcement is a testament to the strengths of our talented employees, industry-leading technologies, and deep global customer relationships.”

Upon completion, Grace will become a privately held company and no longer listed on the New York Stock Exchange. It will operate as a standalone company within Standard Industries Holdings.

Author: Elaine Burridge, Freelance Journalist