DLJ Merchant Banking Partners L.P.
DLJ Merchant Banking Partners L.P. and affiliates of the New York investment banking firm of Donaldson, Lufkin & Jenrette bought Union Carbide's OrganoSilicon Products, Systems and Services business for $300 million. The price consists of a $220 million cash payment and an additional $80 million in preferred stock, which is convertible into 30% of the voting common stock in the new silicones company. The new owners will retain the company's 1,100 employees, but have renamed the business OSi Specialties. The business manufactures fluids and chemicals used in automotive, adhesives, thermoplastics, sealants and other specialty markets. Manufacturing plants are in Sistersville, WV; Antwerp, Belgium; Itatiba, Brazil; Termoli, Italy; and Cheonan, Korea. There are two R&D facilities in the U.S. and one in Geneva, Switzerland. The sale will result in an after-tax gain for Union Carbide, but the exact amount has yet to be determined.