A consortium consisting of Korean company KCC, semiconductor equipment manufacturer Wonik and private equity fund SJL reached an agreement to acquire Momentive Advanced Materials Group (MPM) of the United States for approximately 3.1 billion U.S. dollars, and has now entered the final M & A agreement signing stage.
Jack Boss, CEO of Momentive Advanced Materials Group, said: "This transaction will not only enable Momentive Group's silicone and quartz businesses to gain stronger professional benefits from KCC and Wonik, but will also expand as the business landscape expands. Further strengthen Momentive's leadership in these areas. "
About Momentive
Momentive Quartz has a history of more than 70 years. It is rooted in the silicone business unit of GE, a well-known global electrical company. In 2006, Apollo acquired General Silicone's silicone business unit for US $ 3.8 billion and formally established Momentive Advanced Materials Group (MPM). In 2010, Apollo merged Momentive High-tech Materials and Hexion to form Momentive High-tech Materials Holdings Limited.
Momentive (MPM) is the world's largest producer of silicones and silicon derivatives, as well as the world's leading producer of quartz products and specialty ceramics. The customer base covers more than 100 countries worldwide. In 2015, the company's revenue accounted for 66% of the overseas market.
With fused production technology, the fused silica product industry is far ahead. The company's quartz business is mainly engaged in the production and sales of high-purity fused quartz and ceramic materials.
Momentive products, applications and customers
From the perspective of product structure, the company's quartz products mainly include optical fiber quartz rods, optical fiber quartz tubes, quartz crucibles, quartz ingots, semiconductor quartz tubes, and semiconductor quartz rods.
From the perspective of product characteristics, the company's quartz products are made of fused silica glass, compared with ordinary glass fused silica, the trace element content is greatly reduced, and the bubble content is small. It has high optical transparency, chemical stability, high temperature resistance to deformation, ultra-low thermal expansion coefficient and excellent thermal shock resistance.
From the perspective of raw materials, the company has not yet mastered the purification technology of high-purity quartz sand. The raw materials need to be purchased from Unimine.
From the client's perspective, the company's customer quality is generally high. Major customers include Procter & Gamble, Sony, Samsung, BMW, Panasonic, Toshiba, 3M, Avery, Continental Tire, Saint-Gobain, Unilever, BASF, Home Depot and Ruishi. The company's largest customers accounted for 3% of net sales, and the top 20 customers accounted for 22% in total.
Overall quartz product application and revenue growth: In 2015, the company's quartz and specialty ceramics revenue reached US $ 2.289 billion. In the first half of 2016, organic silicon achieved revenue of USD 1.039 billion, and quartz products achieved revenue of USD 83 million, accounting for 8%.
Momentive's share of international market revenue in 2015
In terms of different regions, the company's market is mainly concentrated overseas. In 2015, the total foreign revenue accounted for 66% of the total revenue. Among them, Germany was the company's largest market segment, accounting for 28% of 2015 revenue. China and Japan together account for 21% of the two major markets.
Momentive's quartz product revenue accounted for more than 40% of the company's operating income
In terms of application fields, the application of quartz products in the lighting and aerospace fields accounts for 50%, the semiconductor field accounts for 30%, and the photovoltaic field accounts for 27%. It is worth noting that although the proportion of quartz products used in the semiconductor field is less than 50%, the semiconductor quartz products have been around 50% of the total revenue. It even reached 62%, 60%, and 59% between 2006 and 2008, respectively. Barriers to semiconductor technology are higher, so profits are significantly higher than in other industries.
About KCC, Wonik and SJL
KCC is the largest coatings and building materials manufacturer in South Korea, with an annual output of 150,000 tons of coatings and 400,000 tons of synthetic resin. KCC has established King Kong Chemical (Kunshan) Co., Ltd. (KCK) and King Kong Chemical (Beijing) Co., Ltd. (KCB) in China.
Wonik is a large integrated group company integrating semiconductor, infrastructure, finance, equipment and other fields. It has Yuanyi (Xi'an) Semiconductor Technology Co., Ltd. in China to provide Samsung with high-purity special gas and quartz outer tubes and quartz inner tubes. , Silicon boat, accessories and other components cleaning services.
SJL is an investment management company in South Korea.