GE has signed an agreement to sell GE Advanced Materials (Silicones & Quartz) to Apollo Management L.P. The sale is for a reported US$3.8 billion in cash and securities, and upon completion of the transaction, GE will own 10% of the new company and hold US$400 million in notes.
GE will receive net proceeds from the deal of approximately US$2 billion after the purchase of minority partners' interest, taxes and deal expenses, according to the company. GE has announced that Wayne Hewett will serve as president and CEO of the new company. Hewett currently heads GE's Advanced Materials business. The new company will be named upon completion of the transaction.
Regulatory approvals must be made. The transaction is expected to close by the end of 2006.