The chemical giant spends 900 million to buy it again!

Recently, Munich-based global leading multinational chemical group WACKER signed an agreement with Shandong Silicon Technology New Materials Co., Ltd. (Shandong Silicon Technology), a specialty silane producer located in Jining, China. The former will invest approximately 120 million euros (approximately RMB). 900 million yuan) to acquire 60% of the latter. The entire transaction is expected to be completed in the first half of 2022 after obtaining the approval of the government regulatory authority and passing the antitrust review.

WACKER President and CEO Christian Hartel said that the new partnership between WACKER and Shandong Silicon Technology is the continuous implementation and further expansion of highly profitable specialty products in WACKER’s global silicone business. China’s share, another move in this strategy. Shandong Silicon Technology is a leading manufacturer of organic functional silanes in China. Organic functional silanes are important components of high-efficiency adhesives, sealants, coatings and composite materials. WACKER also has decades of experience in this field. But so far, WACKER has only produced organic functional silanes in Germany. Through the acquisition of the shares of Shandong Silicon Technology, WACKER can further expand the types of high-quality specialty products provided to the Asian market, and can better get closer to customers in the fast-growing Asian consumer market.

Shandong Silicon Technology was founded in 2013 and is located in Jining New Material Industrial Park in Shandong Province, China. Many organic functional silanes produced are widely used in construction, automobile manufacturing, semiconductor and electronics industries. This leading company in the Chinese industry has achieved strong growth, strong profitability and positive cash flow in the past few years. Shandong Silicon Technology's full-year sales in 2020 will be 54 million euros.

Qu Yuan, chairman of Shandong Silicon Technology New Materials Co., Ltd., said that Shandong Silicon Technology is very pleased to reach a partnership with WACKER, which is one of the world's leading market and technology leaders in the field of organic silicon. By cooperating with WACKER, we can further expand the specialty silane product portfolio.

It is reported that the funds for WACKER’s equity acquisition came from the cash flow generated by WACKER’s operating activities. Since this transaction is a majority stake acquisition, WACKER will merge 100% of the company into the financial statements of the WACKER Group after the transaction is completed.

Introduction to Organic Functional Silanes

WACKER produces and sells organic functional silanes under the GENIOSIL® brand. GENIOSIL® brand organic functional silane is a hybrid compound that combines the functionality of reactive organic groups and the inorganic functionality of alkyl silicates in the same molecule. This special property makes it possible to build molecular bridges between organic polymers and inorganic materials. This performance of organic functional silanes is of great significance in many applications. For example, GENIOSIL® brand silanes can be used as adhesion promoters, curing agents or water-repellent agents, and are important components of adhesives, sealants, coatings and composite materials. In addition, it can also be used for the surface treatment of fillers and the production of cross-linked polyethylene in the plastics industry.