WATERFORD, N.Y.—KCC Corp. has taken steps to consolidate its advanced silicones operations and expertise with a definitive agreement to divest its Silicones Business to Momentive Performance Products Inc., a company for which KCC is the majority shareholder.
The acquisition ultimately strengthens Waterford-headquartered Momentive's position in the Asia-Pacific region as it will take over silicone operations in South Korea and the United Kingdom, as well as sales operations in China.
"We're excited by the synergies this acquisition will bring to Momentive and the broader KCC corporation," Sam Conzone, Momentive president and CEO, said in a statement. "It expands our technological capabilities and geographic footprint while also substantially strengthening our position in the Asia-Pacific region—including Korea, a country with strong and growing demand for silicones and specialty materials."
The acquisition of Seoul, South Korea-based KCC's silicone operations comes on the heels of Momentive selling its Consumer Sealants business to Duesseldorf, Germany-based Henkel.
Financial details of that agreement were not disclosed.
At the same time Momentive was working to divest its Consumer Sealants business, it detailed a $15 million investment in its Waterford, N.Y., operations to boost electric materials production there.
"We are continuing to prioritize and invest in specialty businesses where we have unique capabilities to win," Conzone said in a release issued in August. "Everything we do is focused on creating a stronger, more sustainable future for our employees, our customers and our communities."
Momentive's parent company was acquired by KCC Corp., SJL Partners L.L.C. and Wonik QnC Corporation in 2019.
On Jan. 1, Momentive divested its Quartz and Ceramics business, making SJL and Wonik Momentive Quartz Technologies' principal shareholders. As part of the divestment, Wonik exited its stake in Momentive's Silicones business and KCC Corp. became Momentive's majority shareholder.
"This integration allows us to focus our strengths and expertise on advanced technologies," Joseph Bruderek, vice president of Corporate Development and Strategy, said in a news release. "The acquisition of KCC's Silicone business is another important milestone in Momentive's transformation journey."