Momentive Advanced Materials Corporation ("Momentive") announced that it has signed an agreement to acquire the Korean KCC Group's ("KCC") silicone business in South Korea and the UK and its silicone sales business in China. The acquisition will further strengthen Momentive's global strength in high-end silicone products and professional applications.
The acquisition enabled KCC's silicone business to be transferred and merged from KCC (the major shareholder of Momentive) to Momentive, thus integrating the comprehensive strength and professional capabilities of both parties in the advanced silicone business. Momentive develops and produces high-end and specialty silicone products for applications in healthcare, telecommunications, electronics, personal care, construction, transportation, agriculture, energy and many other industries.
Dr. Sam Conzone, President and CEO of Momentive Group, said: “We are excited about the synergy and business opportunities that this acquisition brings to Momentive and KCC Group. The acquisition further broadens our technical capabilities and expands our business. In the field, we will continue to strengthen our business development in the Asia-Pacific region, including South Korea, which has strong and growing demand for silicone and specialty materials."
Momentive recently announced a series of strategic initiatives to transform itself into an industry leader in specialty silicones, including the recent sale of its North American consumer sealant business to Henkel, and the phasing out of its location in Watford, New York. At the same time, Momentive will invest US$15 million in the production of advanced electronic materials.
Mr. Joseph Bruderek, Vice President of Corporate Development and Strategy of Momentive, said: “The integration of the silicone business allows us to focus Momentive`s strengths and expertise on advanced technologies. The acquisition of KCC`s silicone business is part of Momentive`s transformation and an another important milestone for upgrading process.
Momentive was acquired by South Korean KCC Group, SJL Partners LLC ("SJL") and Wonik QnC Corporation ("Wonik") in 2019. On January 1, 2020, Momentive divested its quartz and ceramic business, and SJL and Wonik became the main shareholders of the divested Momentive Quartz Technology Company. As part of the overall divestiture of assets, Wonik has withdrawn its shares in Momentive’s silicone business, and KCC Group has become a major shareholder of Momentive. With the sale of KCC's silicone business to Momentive, KCC's shareholding in Momentive will increase to 60%.