MUNICH, Germany (Oct. 14, 2010)—Wacker Chemicals Korea Inc. signed an agreement to purchase the Lucky Silicone brand from Henkel Technologies (Korea) Ltd. Terms of the agreement, which still requires antitrust approval, were not disclosed.
Besides the rights to the brand, the Wacker Chemie A.G. subsidiary also receives a production plant in Jincheon, South Korea, including the associated real estate. Wacker said it will assume all the inventories and receivables related to the business. It also said it intends to retain the existing work force of about 40.
The firms expect the deal to close by year's end. The Lucky Silicone brand mainly includes silicone sealants that are used in the construction and other industries. In 2009, Henkel Technologies Korea posted sales of about $28 million from Lucky Silicone products.
The purchase “strengthens both our market presence and supply chain in South Korea,” said Wacker Silicones President Carlos Weise. The firm has been supplying chemical products to South Korea since the mid-1980s, and set up its local subsidiary in 1996.