WACKER acquires 60 percent stake in chinese speciality chemical silane manufacturer SICO Performance Material. Purchase price for the stake is around €120 million. Transaction expected to close in first half of 2022.
Financing of Investment
WACKER will finance the investment from its free cashflow. As the joint venture is a majority-owned company, WACKER will fully consolidate it in its consolidated financial statements after the transaction is completed.
SICO Performance Material produces a range of organo-functional silanes at the Jining new material industrial park in the Chinese province of Shandong, which are used, for example, in the construction, automotive, semiconductor, and electronics industries. In 2020, SICO posted annual sales of € 54 million.
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Our new partnership with SICO is a consistent step in our strategy to further expand the share of high-margin specialties in our silicone business worldwide," explains Christian Hartel, WACKER's president & CEO.
Christian adds, "
SICO is a leading manufacturer of organofunctional silanes in China, which are a key component in high-performance adhesives, sealants, coatings, and composites. WACKER, in turn, also has decades of experience in this field. Up to now, however, we have manufactured organofunctional silanes exclusively in Germany. By acquiring a stake in SICO, we are now further expanding our range of high-performance specialty products in Asia and moving closer to our customers in these fast-growing consumer markets."
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We are very pleased to join forces with WACKER," says Qu Yuan, chairman of SICO Performance Material. "
WACKER is one of the global market and technology leaders in silicones. Together, we will further expand our specialty silane portfolio."
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Source: WACKER