Momentive Performance Materials to be acquired
Momentive specializes in silicones and quartz products and supplies industries as diverse as aerospace and agriculture, food and beverage, energy and packaging, and (of course) beauty and personal care.
The company has been around for some 75 years and serving the cosmetics industry that long as well. “Formulators in the personal care industry have long looked to Momentive for ingredients to help them produce new products with benefits consumers can see and feel,” the Momentive site boasts, explaining that the companies silicone ingredients help deliver “silkier lotions; more efficient shampoos and conditioners; brighter, smoother, longer lasting cosmetics; drier antiperspirants; and more spreadable and effective sunscreens.”
The team
“Today’s announcement is the result of a thoughtful and comprehensive review of the strategic growth and value creation opportunities available to the Company,” Momentive CEO and president Jack Boss, says in a media release issued Monday.
And he goes on to reassure company staff and clients that it’s an opportunity for everyone: “We believe this is a great outcome for all of our stakeholders, delivering maximum value to our stockholders while positioning the Company for long-term growth and future job creation that will benefit our talented employees across the globe, customers and suppliers.”
The transaction
The companies acquiring Momemtive are all headquartered in South Korean: private equity firm SJL Partners LLC; chemical and auto parts maker KCC Corporation; and quartz and ceramic materials maker Wonik QnC Corporation.
The KCC Corporation silicone page does mention personal care a few time. While Wonik QnC Corporation products are mainly used by semiconductor manufacturers. SJL Partners manages “private equity investments on behalf of sophisticated institutional investors and financial institutions in Korea.” And the firm’s “limited partner base consists of leading banks, securities companies, public and private pension funds, and sovereign wealth funds,” according to the SJL site.
(Click through the ‘years’ on this SJL page to see the sorts of investments, acquisitions, and deals the company makes.)
As Boss sees it, “the transaction will not only allow our silicones and quartz businesses to benefit from KCC and Wonik’s industry expertise but will also further enhance Momentive’s global leadership position by expanding our portfolio of products, broadening our geographic reach and strengthening our financial position.”
He adds, “we look forward to partnering with the exceptional teams at KCC, Wonik and SJL after the transaction closes to continue providing specialized products and services to our global customers.”
The future
The deal is expected to close in the first half of 2019.
Speaking on behalf of KCC, Wonik, and SJL; chairman and managing partner of SJL, Steve Lim tells the press, “we are eager to begin this partnership with Jack and the Momentive team.”
“As a result of this highly strategic transaction the combined company will have superior capabilities to better compete in today’s global market. The combination of Momentive’s leading product portfolios, KCC and Wonik’s reach into an expanded geographical market and SJL’s solid investment backing and private equity expertise will further position the Company for long-term success.”
---
Deanna Utroske, CosmeticsDesign.com Editor, covers beauty business news in the Americas region and publishes the weekly Indie Beauty Profile column, showcasing the inspiring work of entrepreneurs and innovative brands.
