Munich-based chemical company Wacker has acquired a 60% stake in specialty silane manufacturer SICO Performance Material Co., Ltd, Jining (China), a leading manufacturer of organofunctional silanes, which are a key component in high-performance adhesives, sealants, coatings, and composites. The transaction is expected to close in the first half of 2022 after the necessary regulatory and antitrust approvals have been granted.
According to Christian Hartel, Wacker’s President and CEO, the acquisition of a stake in SICO will allow Wacker to further develop its portfolio of high-performance speciality products in Asia and bring the company closer to its clients in these growing consumer markets. SICO has achieved a positive cash flow and in 2020, has reached EUR54 million in annual sales in 2020.
Wacker said it will fund the investment from its free cashflow. As the joint venture is a majority-owned company, it will also fully consolidate it in its consolidated financial statements after the transaction is completed.