When Craig Morrison tells fellow business leaders about the company he runs, they don't usually recognize the name -- even though it's in the Fortune 500.
Central Ohio, meet Hexion Specialty Chemicals.
You might remember it as Borden Chemical.
"I tell people we're Borden Chemical and some other companies," said Morrison, Hexion's chairman and chief executive. "And we're not a small business anymore by Columbus standards."
Today, the company, based in Borden's old Broad Street offices, has 7,500 employees at 118 operations in 23 countries. Its revenue has continued to climb, reaching more than $5 billion this year. Hexion also has purchased pieces of Orica Limited, Rohm and Haas and Akzo Nobel, with more acquisitions on the way.
Most consumers wouldn't recognize Hexion's products. The company manufactures resins, adhesives and coatings used to make exteriors of buildings weather resistant, to bond ceramic and marble tiles to floors and to make parts of planes more resistant to fire and noise.
"It's definitely not a consumer product," said analyst John Rogers with Moody's Investors Service, who follows Hexion. "If you're outside the industry, you probably don't know that this company exists."
Hexion's products also insulate electrical transformers and make ink more durable, printable and faster drying. The resins are key ingredients in paints and finishes and keep underground cracks and fissures open to allow for the extraction of oil and natural gas.
The resins bind wood particles in products such as plywood, particle board and oriented strand board -- all of which are used in many homes and other products.
Rogers said Hexion has good management and is "well positioned." The company wracked up lots of debt -- partly through a refinancing effort announced in September after a failed attempt to go public.
"We believe, fundamentally, this is a cyclical industry," he said. "Right now, you're seeing the upside.
"How does this company look at the bottom of the next downturn? "
Hexion officials say their outlook is favorable. The company's books are in line with other chemical companies, especially those, like Hexion, that are owned by private-equity firms. Hexion is owned by Apollo Management LP.
Apollo and similar companies "use debt as a means to raise capital, to raise cash," said Peter Loscocco, Hexion spokesman.
Borden's roots in the chemical industry date to 1929. As Borden, its milk and its "contented cows" went international in the 20 th century, the company's chemical division also grew.
Borden's other assets were sold in the late-1990s and early 2000s. Borden Chemical was wiped away in spring 2005 when Germany's Bakelite AG and two Houston companies combined to create Hexion.
Hexion's founding started during a conversation outside a ballroom at a New York City hotel in spring 2004.
Borden's owner, New York investment firm Kohlberg Kravis Roberts & Co., was considering taking the company public or putting it up for sale. Morrison and other Borden leaders were explaining the company's goals to Apollo representatives.
Borden officials wanted to become leaders in adhesives and resins. The company was considering buying Bakelite AG and some smaller companies.
After the five-hour presentation, Apollo's founding partner, Josh Harris, asked to speak to Morrison.
"He pulled me into the hallway and said, 'This is exactly the same vision we have,' " Morrison said.
Hexion has its headquarters in Columbus, but the closest manufacturing operation is in Cincinnati. Still, the sale of Borden and creation of Hexion created jobs in central Ohio. More than 200 people work for the company here today, compared with 120 in 2003 for Borden.
The company should continue to add employees in central Ohio, Morrison said.
"We're still consolidating different functions into the Columbus headquarters," Morrison said. "We've taken space in the (Borden) building and we have space available, knowing we're going to continue to expand."
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