KCC, Korea’s leading construction material producer, will acquire U.S.-based Momentive Performance Materials, one of the world’s largest manufacturers of silicone, quarts and ceramics.
According to the investment banking industry on September 13, a KCC-led consortium will acquire a 100% stake in Momentive for about US$3 billion.
The consortium includes Wonik Group, a Korean semiconductor raw material and equipment maker, and SJL Partners, a private equity fund (PEF) management company.
Wonik Holdings, the holding company of Wonik Group, and Wonik QnC, an affiliate, will hold a board meeting on the day to approve their participation in the acquisition of Momentive.
SJL Partners will pay 50% of the acquisition price, while KCC and Wonik will account for 45% and 5%, respectively.
Once the acquisition of the stake is completed, KCC will take over the silicone business and Wonik will acquire the quartz and ceramic businesses. SJL Partners will have a 50% stake in both business divisions.
With the acquisition, KCC is expected to ramp up its annual sales of silicone to 2 trillion won (US$1.8 billion) from the current 200 billion won (US$180 million).