MOMENTIVE AND HEXION TO MERGE

Abstract

PRIVATE EQUITY FIRM Apollo Management said last week it will merge Hexion Specialty Chemicals and Momentive Performance Materials, both companies it controls, into a single specialty chemicals and materials maker. The combined firm, which will take the Momentive name, will have annual sales of about $7.5 billion. Hexion, the larger of the two firms, is a leading supplier of thermosetting resins for binding, bonding, and coating. Apollo created the company in 2005 from its earlier acquisitions of Borden Chemical, Resolution Performance Products, and Resolution Specialty Materials. Hexion has continued to grow by buying Bakelite and six other companies. Apollo acquired Momentive, a maker of silicones and specialty quartz, from General Electric in 2006. Prior to the purchase, Momentive had been GE’s Advanced Materials division. Craig O. Morrison, CEO of Hexion, will become chairman and CEO of the combined company when the merger is complete, which Apollo expects to happen on Oct. 1. The new Momentive ...