Apollo Management to buy GE Advanced Materials Business

Upon completion of the transaction, GE will receive a ten per cent ownership stake in the new company and hold $400m of notes.

GE Advanced Materials is a supplier of silicone-based products, silanes, sealants, urethane additives and adhesives; and high-purity fused quartz and ceramics materials. The company employs 5,000 people in 38 locations worldwide.

'Advanced Materials is a global leader in a wide range of high technology materials solutions,' said Joshua Harris, a founding partner of Apollo. '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 has two major joint ventures - GE Toshiba Silicones and GE Bayer Silicones. In two related transactions, GE announced that it has agreed with Toshiba and Bayer to acquire 100 per cent of their respective joint venture equity stakes. GETOS and GEBS will become wholly owned by GE and will be included in the acquisition by Apollo.

Wayne Hewett, who currently leads the Advanced Materials business for GE, will serve as president and chief executive officer of the new business, which will be renamed upon completion of the transaction.

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