Silicone products and specialty chemicals firm Momentive Performance Materials agreed to sell its Consumer Sealants division to chemicals and consumer products manufacturer Henkel, the company revealed this week. Terms of the transaction were not disclosed.
The division produces GE brand sealants and caulks for construction and home improvement applications. Momentive said the deal was linked to its new business plan.
“It’s sad to see Momentive shed part of its GE legacy,” Freedonia Group Industry Analyst Kent Furst said in a company release, “but it makes sense from a business standpoint. Consumer products aren’t a great fit for Momentive, and the move allows the company to sharpen its focus on specialty silicones for industrial customers. It also fits in with the company’s strategy to reposition the remaining operations at the Waterford, NY facility toward advanced applications, in order to keep the site globally competitive.”
Under the terms of a transitional supply agreement signed by the companies. Momentive will manufacture sealants for Henkel at its plants through 2021.
“This transaction will further position Henkel as a leading supplier of sealants, adhesives, and related products for the construction industry. Momentive’s silicone-based sealants are used by both construction professionals and DIY contractors on roofs, windows and doors, floors, foundations, and other areas of the home,” said Matt Zielenski, industry analyst for Freedonia Group, in a statement. “Given the construction market has not been affected by the COVID-19 pandemic as other sectors of the economy, Henkel will be well-positioned for sales growth as it integrates this business into its own sealant operations.”