May 25, 2007. /Lesprom Network/. Hexion Specialty Chemicals, the world's leading global source for thermoset resins, announced on May 25, 2007 that it has reached a definitive agreement to acquire the German resins and formaldehyde business of ARKEMA GmbH. Terms of the agreement were not disclosed. The transaction is subject to normal governmental reviews and is expected to close during the third quarter. Based in the Leuna industrial park, located in east central Germany, the ARKEMA German resins and formaldehyde business manufactures formaldehyde and formaldehyde-based resins including urea-formaldehyde, phenol-formaldehyde and melamine-based resin systems. These resins are used to manufacture engineered wood panels including oriented standard board, particleboard and medium density fiberboard. The business also produces impregnation resins used to laminate decorative paper surfaces to wood products. The business employs 100 people and had 2006 revenues of approximately Euro 101 million. "The ARKEMA German resins and formaldehyde business is a tremendous fit for Hexion as we expand our forest product resins business to serve our global customer base," said Joseph Bevilaqua, president of the company's phenolic & forest product resins division. "This acquisition will give us a strong position in Germany, the largest wood panels market in Europe, and ready access to growing markets in Eastern Europe. It also complements both our existing European presence and our leading positions in the Americas and the Asia-Pacific region." Based in Columbus, Ohio, Hexion Specialty Chemicals is the global leader in thermoset resins. Hexion serves the global wood and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. Hexion had 2006 sales of $5.2 billion and employs more than 7 000 associates. A global chemical player, Arkema consists of 3 coherent and related business segments: vinyl products, industrial chemicals, and performance products. Present in over 40 countries with 17 000 employees, Arkema achieved sales of Euro 5.7 billion in 2006. With its 6 research centers in France, the United States and Japan, and internationally recognized brands, Arkema holds leadership positions in its principal markets.