Columbia-based W. R. Grace & Co., a global specialty chemical company and Standard Industries Holdings, the parent company of Standard Industries, a privately held global industrial company, have entered into a definitive agreement. It calls for Standard to acquire Grace in an all-cash transaction valued at approximately $7 billion, including Grace’s pending pharma fine chemistry acquisition.
Standard Industries’ related investment platform 40 North Management is a long-standing shareholder of Grace.
Under the terms of the agreement, Standard Industries Holdings will acquire all of the outstanding shares of Grace common stock for $70 per share in cash. The purchase price represents a premium of approximately 59 percent over Grace’s closing stock price of $44.05 on Nov. 6, 2020, the last trading day prior to the announcement of 40 North’s initial proposal to acquire the company on Nov. 9, 2020. The Grace Board of Directors unanimously approved the transaction.
“We are confident that our agreement with Standard Industries Holdings is the best path forward for Grace and our shareholders,” said Hudson La Force, Grace’s president and CEO. “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.”
Grace will operate as a standalone company within the portfolio of Standard Industries Holdings, which includes Standard Industries’ industry-leading businesses GAF, BMI Group, Schiedel, Siplast, SGI and GAF Energy.