Momentive sells wood resin and acrylic resins

Sources said on Wednesday that the United States intends to sell its forest products resin business and acrylic monomer unit. “It is clear that Momentive intends to increase profits through the sale of these businesses. At present, the financial market has a good atmosphere and it is a good time to sell.”

It is reported that U.S. investment banks Goldman Sachs and Morgan Stanley will jointly take over the sale of the forest products resin business, while the Prince Ridge Group will be responsible for the sale of acrylic monomers.

Momentive Forest Products' resin business produces urea formaldehyde resin, with sales of US$448 million in the first quarter of this year and US$45 million before tax interest depreciation and amortization. In 2010, the department had sales of US$1.61 billion and profit before tax depreciation and amortization was US$177 million.

The annual revenue of the acrylic monomer business is estimated to reach US$500 million and is part of the Momentive Epoxy, Phenolic Resins and Coatings business.

On April 18 this year, Momentive agreed to sell its North American composite materials and coating resins business to PCCR USA, a subsidiary of European investment group Investindustrial.

On February 1 this year, Momentive sold its ink and adhesive resin business to Japan's Harima Chemical Company.

Momentive and PrinceRidge declined to reveal more details, while Goldman Sachs and Morgan Stanly did not immediately respond to details.