KCC consortium acquires U.S. silicone maker Momentive

Lim Chang-won Reporter Posted : 2018-09-13 13:22 Updated : 2018-09-13 15:58
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[Courtesy of KCC]

SEOUL -- A consortium led by KCC, a top provider of construction materials and paints in South Korea, acquired Momentive, an American developer of high-performance resins, silicones and other advanced materials, in a deal that could affect the global market.

KCC formed a consortium with SJL Partners, a Seoul-based private equity fund, and Wonik QnC, which specializes in quartz and ceramic wares required in the production of semiconductor wafers, to acquire a 100 percent stake in Momentive from Apollo Global Management, a U.S. private equity investment firm. The deal, signed in Seoul, was valued at around $3 billion.

KCC owned 45 percent and SJL Partners held 50 percent, with the remainder controlled by Wonik. KCC will control Momentive's silicone business, while Wonik is in charge of quartz.

Momentive, which posted $2.3 billion in sales last year, is a global leader in the manufacturing of products derived from quartz and specialty ceramics and has a global production base with factories in the U.S., Europe and China.

The acquisition would help KCC become the world's second largest producer of silicones, and KCC vowed to accelerate the development of new high-value products, expand its presence abroad and strengthen its global competitiveness.

KCC's annual silicon production is estimated at about 70,000 tons. KCC Chairman Chung Mong-jin has disclosed a strategy to go global, set up an international business network and develop eco-friendly and high-value products as future growth engines