Crompton's organosilicones business purchased by GE. (Acquisitions, Expansions).Crompton Cromp·ton , Samuel 1753-1827. British inventor of the spinning mule (1779). , Middlebury, CT, has entered into a definitive agreement to sell its organosilicones business to the GE Specialty Materials division of General Electric and to acquire GE's Specialty Chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. business. At closing, Crompton will receive $645 million in cash and the GE Specialty Chemicals business, which has an agreed-upon value of $160 million. In addition, Crompton will receive quarterly earn-out Earn-out Refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement. 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 an incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. contribution margin, will be a minimum of $105 million and a maximum of $250 million, payable quarterly over a three-year period. |
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