GE sells advanced materials division to Apollo Management

GE has signed an agreement to sell GE Advanced Materials (Silicones & Quartz) to Apollo Management, L.P., a New York City-based private equity firm, in a deal valued at approximately US$3.8 billion in cash and securities.
Upon completion of the transaction, GE will receive a 10 per cent ownership stake in the new company and hold $400 million of notes. The closing of the transaction is subject to customary conditions, including the receipt of regulatory approvals, and is expected to occur before the end of 2006.
“This announcement is another big step in repositioning the Industrial segment for faster growth and higher returns,” Lloyd Trotter, GE vice chairman and president and CEO of GE Industrial, said. “We negotiated an attractive price for the deal, and we will use the proceeds to fund growth and restructuring in our industrial businesses.”
“Advanced Materials is a global leader in a wide range of high-technology materials solutions,” Joshua Harris, a founding partner of Apollo, said. “It has a world class management team, a robust technology portfolio and strong research and development. This combination makes it an extremely valuable asset and gives Apollo a solid foundation to profitably grow this business and create long-term value.”
GE Advanced Materials is a $2.5 billion supplier of silicone-based products, silanes, sealants, urethane additives and adhesives; and high-purity fused quartz and ceramics materials. It is headquartered in Wilton, Conn. and employs 5,000 people in 38 locations worldwide.
GE operates in more than 100 countries and employs more than 300,000 people worldwide. Apollo Management, founded in 1990, is a private equity, debt and capital markets investing firm.