Waterford, N.Y. — A group of South Korean companies have reached an agreement to acquire MPM Holdings Inc., the parent company of global silicones supplier Momentive, for about $3.1 billion.
Momentive traces its roots back to the 1940s and was originally General Electric's silicones business. On the plastics side, the company's products include liquid silicone rubber.
The buyers — SJL Partners LLC, KCC Corp. and Wonik QnC Corp. — will assume all of Momentive's net debt, pension and other post-employment benefit liabilities. Momentive reported total liabilities of $2.18 billion.
"On behalf of KCC, Wonik and SJL, we are eager to begin this partnership with [Momentive CEO Jack Boss] and the Momentive team," Steve Lim, chairman and managing partner of SJL, representing the investor group, said in a statement.
The companies touted the combination of Momentive's product portfolios, KCC and Wonik's geographic reach and SJL's investment and private equity expertise.
The agreement calls for Momentive stockholders to receive $32.50 for each share of common stock, subject to minimum closing cash requirements.
Waterford-based Momentive makes specialty silicones and silanes, as well as fused quartz and specialty ceramics. The firm serves more than 4,000 customers in more than 100 countries with a global network of 24 production sites and 12 research and development facilities.
The company operates nine business units—silanes (including those for tire and rubber), specialty fluids, urethane additives, coatings, elastomers (LSR, heat-cured rubber and custom compounds), electronics, sealants, ceramics and quartz.
Momentive most recently posted second quarter sales of $704 million—up 19 percent against 2017—and net profit of $39 million, an increase of $20 million compared to the previous period.
"Today's announcement is the result of a thoughtful and comprehensive review of the strategic growth and value creation opportunities available to Momentive," Boss said in a statement.
SJL is a private equity investment manager focused on partnership investments with market-leading companies to support growth, including bolt-on acquisitions.
Wonik QnC is based in Gumi, South Korea, and produces quartz and ceramic wares used in semiconductor wafers.
Based in Seoul, KCC Corp. is a leading chemicals manufacturer in South Korea specializing in paints, building materials and specialty materials.
"The transaction will not only allow our silicones and quartz businesses to benefit from KCC and Wonik's industry expertise, but will also further enhance Momentive's global leadership position by expanding our portfolio of products, broadening our geographic reach and strengthening our financial position," Boss said.