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UNION CARBIDE TO SELL ORGANOSILICON BUSINESS TO DLJ MERCHANT BANKING PARTNERS FOR $300 MILLION

 DANBURY, Conn., April 13 /PRNewswire/ -- Union Carbide Corporation (NYSE: UK) today announced the signing of a definitive agreement for the sale of its OrganoSilicon Products, Systems and Services (OSi) business to DLJ Merchant Banking Partners L.P. and affiliates of the New York investment banking firm of Donaldson, Lufkin & Jenrette, Inc. The $300 million price consists of $220 million in cash plus $80 million of preferred stock, which is convertible into 30 percent of the voting common stock in the new silicones company.
 The sale is expected to result in an after-tax gain for Union Carbide, the exact amount of which remains to be determined. The transaction is expected to close in the next few months.
 Union Carbide Chairman Robert D. Kennedy said that with this transaction the company has essentially concluded its asset sales program announced in December 1991 that was intended to reduce debt, improve debt to capitalization and improve interest coverage.
 OSi Vice President and General Manager Thomas P. Leyden said that the new business will be known as OSi Specialties, Inc., and it will retain the current workforce of more than 1,100 employees worldwide.
 The OSi business manufactures fluids and chemicals used in fiberglass, reinforced plastics, textiles, coatings, automotive, adhesives, pharmaceutical, agricultural, electrical, personal care, thermoplastics, sealants and other specialty markets. Manufacturing facilities are in Sistersville, W.Va.; Antwerp, Belgium; Itatiba, Brazil; Termoli, Italy; and Cheonan, Korea. Research and development facilities are located in South Charleston; W.Va.; Tarrytown, N.Y.; and Geneva, Switzerland. OSi has sales offices worldwide and in 1992 had sales of about $350 million.
 Union Carbide Corporation is a worldwide, basic chemicals company with advanced process technologies and large-scale chemical production facilities. In 1992, Union Carbide had sales of nearly $5 billion.
 Donaldson, Lufkin & Jenrette, Inc. is a leading U.S. investment banking firm and an independently operated subsidiary of The Equitable Life Companies Incorporated. DLJ Merchant Banking Partners L.P. and its affiliates represent approximately $1 billion of committed capital dedicated to acquisitions.
 Union Carbide is:
 -- Among the largest manufacturers of polyethylene, the world's most widely used plastic, and the technology leader in this industry.
 -- The world's largest producer of ethylene oxide and its derivatives, including ethylene glycol, used for polyester fiber, resin and film, automotive antifreeze and other products.
 -- The leading North American supplier of solvents and intermediates to the paint and coatings industry.
 -- A leading manufacturer and supplier of specialty chemicals and services used in the personal care products, pharmaceuticals, automotive, oil and gas and industrial lubricant industries.
 -0- 4/13/93
 /CONTACT: Tomm F. Sprick of Union Carbide, 203-794-6992/
 (UK)


CO: Union Carbide Corporation; DLJ Merchant Banking Partners L.P. ST: Connecticut IN: CHM SU: TNM

SH -- NY014 -- 5087 04/13/93 09:14 EDT
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Publication:PR Newswire
Date:Apr 13, 1993
Words:458
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