Momentive Performance Materials Inc., a global producer of silicones and advanced materials, will merge with Hexion Specialty Chemicals to form one of the world's largest specialty chemicals and materials companies, the parent companies have announced.
The new company, which will assume the Momentive Performance Materials name, anticipates $7.5 billion in annual sales; more than 10,000 employees; 117 manufacturing facilities; and more than 20,000 customers worldwide.
Operations will serve all major regions of the world with a broad portfolio of specialty performance products for industrial and consumer markets, the companies said in announcing the merger Monday (Sept. 13).
The capital structures of both Momentive Performance Materials Holdings Inc. and Hexion LLC and their respective subsidiaries will remain in place. Affiliates of the private investment firm Apollo Management L.P. own a controlling interest in both Momentive and Hexion.
The boards of both holding companies have approved the merger, which is subject to customary conditions. Closing is estimated for Oct. 1. The transaction does not require any additional financing.
About the Companies
Momentive Performance Materials was created in 2006 from the sale of GE Advanced Materials to Apollo Management L.P. Based in Albany, NY, Momentive had 2009 revenues of $2.1 billion, with about 4,600 employees and 25 global manufacturing locations.
Hexion Specialty Chemicals is a leading global producer of thermoset resins, serving a broad range of industrial markets with binding, bonding and coating resin technologies, products and technical support. Hexion was formed in 2005 through the merger of Borden Chemical Inc., Resolution Performance Products LLC (RPP), and Resolution Specialty Materials LLC (RSM), as well as the acquisition of Bakelite AG. After six additional acquisitions, the Columbus, OH-based company had $4 billion in revenues; 6,200 employees; and 92 global manufacturing locations by the end of 2009.
The new company will be headquartered in Columbus, but the silicones and quartz businesses will continue to be based in Albany, where the company will maintain a significant presence.
||Craig O. Morrison|
Hexion CEO and chairman Craig O. Morrison will become chairman and CEO of the combined company. Momentive president and CEO Jonathan Rich, PhD, will join the new company's Board of Directors.
Technologies and Industries Served
The chart below outlines the combined company's primary technologies and industries served.