MUNICH (dpa-AFX) - Wacker Chemie (WKCMF.PK), a German chemical company, said Wednesday that it has acquired a 60 percent stake in SICO Performance Material Co., Ltd., a Chinese specialty silane manufacturer, for around 120 million euros. The transaction is expected to close in the first half of 2022.
WACKER will finance the investment from its free cash flow. As a majority-owned company, WACKER aims to fully consolidate the firm in its consolidated financial statements once the transaction is completed.
SICO has grown strongly in recent years, operates with profitability and generates a positive cash flow. In 2020, SICO posted annual sales of 54 million euros.
With the latest acquisition of the stake in SICO, the Munich-headquartered firm aims to expand its range of high-performance specialty products in Asia and moving closer to its customers in these fast-growing consumer markets.
'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,' commented Christian Hartel, WACKER's President and CEO.
Founded in 2013, SICO produces a range of organofunctional silanes at the Jining New Material Industrial Park in the Chinese province of Shandong.
Copyright RTT News/dpa-AFX