WILTON, Conn.--(BUSINESS WIRE)--July 31, 2003--
Innovative silicon chemistry platform joins GE Silicones to offer an unparalleled line of application expertise and technology to specialty silicones customers.
GE Specialty Materials, a unit of General Electric Company (NYSE:GE), today announced that it has completed its acquisition of OSi Specialties, an organosilicones business, from Crompton Corporation (NYSE:CK). OSi Specialties will become part of GE Silicones. The marriage of GE Silicones and OSi Specialties creates a growth business to serve large, new market applications using a strong portfolio of complementary product technology. The acquisition adds more than $450 million in annual sales to GE Silicones.
"This is an incredibly positive move for our business," said William A. Woodburn, President and CEO of GE Specialty Materials. "We are building a stronger GE Silicones business that will deliver better technologies and application development services to our global customers. We are focusing our investment in platforms where we will play a global leadership role for the long term."
GE Silicones Vice President and General Manager, Wayne Hewett said, "Consider the possibilities: our customers are now offered the added value of a strengthened technology base, an enhanced basket of complementary products, and a combined application expertise in target market segments. OSi Specialties greatly enhances GE Silicones capabilities. Together, the people of GE Silicones and OSi Specialties will create a winning, growth-focused environment."
The deal also included the sale of GE Specialty Chemicals to Crompton Corporation. Crompton received $633 million in cash and GE's Specialty Chemicals business based in Morgantown, West Virginia. The sale of certain international OSi assets has been deferred and approximately $12 million of the purchase price has been placed into escrow pending completion of the sale of those assets. Crompton will also receive quarterly "earn-out" payments for three years after closing, based on the performance of the new combined GE Silicones business. The earn-out, which is based on incremental contribution margin, is expected to range from $105 million to a maximum of $250 million.
OSi Specialties is known as an innovator in the chemical industry, and has pioneered many advances in silane and specialty silicone technology. OSi Specialties is a leading, global supplier of silanes, specialty silicones and urethane additives. OSi Specialties silanes are used as crosslinking and coupling agents and as adhesion promoters in tires and rubber, coatings, adhesives, sealants, thermoplastics, fiber reinforced composites and other markets. Their specialty silicones are used in diverse markets including consumer care, textiles, foam control, crop protection, and pulp and paper. OSi Specialties urethane additives improve the performance of furniture and bedding, construction, appliances, automotive interiors and footwear. OSi Specialties provides excellent technical service, and partners with their customers to help them solve market needs. Click here to visit OSi Specialties on-line.
For more than 55 years, GE Silicones has been manufacturing and selling a unique family of materials to customers worldwide. GE Silicones products include fluids and specialties, elastomers, coatings and sealants. GE Silicones has more than 3,000 patents relating to silicone technology.
The silicones family of engineered materials is man-made, with a chemical backbone similar to that of high temperature inorganic materials such as quartz, glass and sand. GE Silicones has developed versatile product families with significant user benefits and dramatic differences in product form. The inherent benefits of silicones' flexible chemistry include moisture protection, UV protection, ozone and chemical resistance, and unique temperature cycling capabilities. You can visit GE Silicones at http://www.gesilicones.com/
GE Silicones is part of GE Specialty Materials (GESM) which is an advanced materials technology and service company offering a wide range of products including chemical water treatment programs, process additives, fused quartz, silicones and industrial diamonds. In addition to GE Silicones, GESM includes: GE Water Technologies, GE Quartz and GE Superabrasives. GESM's more than 10,000 global employees use technological innovation and Six Sigma to serve customers in segments as diverse as cosmetics, semi-conductors, oil drilling, construction and telecommunications. Visit GE Specialty Materials online at gespecialtymaterials.com.
This news release includes forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995, reflecting management's current analysis and expectations, based on reasonable assumptions. Results could differ materially depending on such factors as business climate, economic and competitive uncertainties, failure to complete transactions, adverse legal and regulatory developments, and adverse changes in economic and political climates around the world. As appropriate, additional factors are contained in reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. This paragraph is included to provide safe harbor for forward-looking statements, which are not required to be publicly revised as circumstances change.
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CONTACT:
GE Silicones
Milissa Rocker, 518-233-3893
Pager - 518-341-3390
or
OSi Specialties
Nancy Pitts, 203-552-2256