Henkel's Acquisition Of Momentive's Consumer Sealants Division

Freedonia Analysts Weigh In On the Agreement to Sell

Cleveland, OH /PRNewswire/ - Momentive Performance Materials, a leading supplier of silicone-based and other specialty chemical products, announced today – as part of a new business plan – that it has entered into an agreement to sell its Consumer Sealants division to Henkel, a global manufacturer of adhesives, detergents, and other consumer products. The Consumer Sealants division makes sealants and caulks used in construction and home improvement products that are sold under the GE brand name.

While terms of the deal were not disclosed, Momentive will continue to produce these sealants for Henkel at its own facilities until 2021, per the terms of a transitional supply agreement.

"It's sad to see Momentive shed part of its GE legacy," says Freedonia Group industry analyst Kent Furst, "but it makes sense from a business standpoint. Consumer products aren't a great fit for Momentive, and the move allows the company to sharpen its focus on specialty silicones for industrial customers. It also fits in with the company's strategy to reposition the remaining operations at the Waterford, NY facility toward advanced applications, in order to keep the site globally competitive."

According to Freedonia Group industry analyst Matt Zielenski, "This transaction will further position Henkel as a leading supplier of sealants, adhesives, and related products for the construction industry. Momentive's silicone-based sealants are used by both construction professionals and DIY contractors on roofs, windows and doors, floors, foundations, and other areas of the home. Given that the construction market has not been affected by the COVID-19 pandemic as other sectors of the economy, Henkel will be well-positioned for sales growth as it integrates this business into its own sealant operations."

Furthermore, noted Zielenski, Henkel's already strong roster of recognized brand names – such as Loctite and OSI – will be enriched by the addition of Momentive's GE-branded products.

For more information on the outlook for related building products – such as roofing and the building envelope – see the Construction Studies page featuring the following industry studies by The Freedonia Group:

Adhesives & Sealants in the US by Product & Market

Construction Chemicals in the US by Product & Market

Roofing Accessories

Silicones in the US by Product, Market, & Function

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