18 May 2011 18:48 [Source: ICIS news]
NEW YORK (ICIS)--US-based specialty chemicals and materials company Momentive Performance Materials has put its forest products resins business and its acrylic monomers unit on the selling block, sources in the financial community said on Wednesday.
“It’s clear Momentive is trying to increase its margins by selling these businesses. The financing market is favourable, so it’s a good time to be selling,” said one source.
US-based investment banks Goldman Sachs and Morgan Stanley are handling the sale of the forest products resins business, while The PrinceRidge Group is selling the acrylic monomers unit, sources said.
“The sales would make sense, as they could make Momentive a higher margin, attractive business,” said another source.
Momentive’s forest products resins business, which produces urea-formaldehyde resins, posted sales of $448m (€314m) in the first quarter, and $45m in earnings before interest, tax, depreciation and amortisation (EBITDA).
In 2010, the forest products resins unit had sales of $1.61bn and EBITDA of $177m.
The company’s acrylic monomers business is a part of its epoxy, phenolic and coatings resins segment, but one source estimated annual revenues of about $500m for the acrylic business.
On 18 April, Momentive agreed to sell its North American composites and coating resins business to PCCR USA, a subsidiary of European investment group Investindustrial.
On 1 February, Momentive sold its ink and adhesive resins (IAR) business to Japan-based Harima Chemicals.
Momentive and PrinceRidge declined to comment, while Goldman Sachs and Morgan Stanley did not immediately respond to requests for comment.
($1 = €0.70)
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