Crompton Corporation has entered into a definitive agreement to sell its organosilicones business to the GE Specialty Materials division of General Electric Company and to acquire GE's Specialty Chemicals business in return. The company says that the transaction that will significantly reduce its debt and sharpen its strategic operating focus. At closing, Crompton will receive $645 million in cash and the GE Specialty Chemicals business, which has an agreed-value of $160 million. In addition, Crompton will receive quarterly ‘earn-out’ payments for three years after closing based on the combined performance of GE's existing silicones business and the organosilicones business it is acquiring from Crompton. The earn-out, which is based on incremental contribution margin, will be a minimum of $105 million and a maximum of $250 million payable quarterly over a three-year period. This is a short news story only. Visit www.addcomp.com for the latest additives and compounding industry news