WATERFORD -- A group of South Korean Investors has reached a deal to purchase MPM Holdings, the owner of the Momentive Performance Materials plant on routes 4 and 32 in Waterford.
In a news release, the partners valued the deal at approximately $3.1 billion. The buyers will assume liability for Momentive’s debt and post-employment benefit costs, such as pensions.
Momentive has 36 facilities in 17 nations and is headquartered at the Waterford site, which was a GE Silicones plant before General Electric sold its silicones business.
A Momentive spokesman did not return requests for comment Friday, nor did a representative of IUE-CWA Local 81359, the union that led a strike at the Waterford plant in late 2016 and early 2017. Nearly 700 workers walked out during the 105-day strike, which featured frequent and often-raucous pickets and shows of support from politicians and the organized labor community.
Momentive has 12 research and development sites and 24 production facilities to develop and manufacture specialty silicones and silanes, fused quartz, and specialty ceramics products. It has 4,000 customers in 100 countries.
The sale is expected to close in the first half of 2019, subject to regulatory approvals.
The buyer is an investor group consisting of private equity firm SJL Partners LLC, a chemical manufacturer; KCC Corp., and quartz/ceramic manufacturer Wonik QnC Corporation. The boards of directors of the three Korean companies and Momentive have unanimously approved the deal, which will pay Momentive stockholders $32.50 for each share of common stock they own.
“Today’s announcement is the result of a thoughtful and comprehensive review of the strategic growth and value creation opportunities available to the company,” said Momentive President and CEO Jack Boss, in a prepared statement. “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.”