Crompton has entered into a definitive agreement to sell its OSi Specialties organosilicones business to the GE Specialty Materials division of General Electric Co. and acquire GE’s Specialty Chemicals business.
OSi Specialties, headquartered in Greenwich, CT, pioneered silane and specialty silicone technology, and as a leading global supplier of organofunctional silanes, provides GE with products it does not currently offer.
“We are thrilled about the complementary products, technology and application expertise we can offer,” said Wayne Hewett, GE Silicones vice president and general manager. “OSi Specialties greatly enhances GE Silicones capabilities and we look forward to serving our bigger, broader combined customer base.”
Crompton’s organosilicones business had sales of $457 million in 2002. The transaction is expected to close in the third quarter of 2003. When completed, Crompton will receive $645 million in cash and the GE Specialty Chemicals business, which has an agreed-upon value of $160 million. In addition, Crompton will receive quarterly “earn-out” payments for three years after closing based on the combined performance of GE’s existing silicones business and the organosilicones business it is acquiring from Crompton.