NEW YORK (AP) -- Privately held chemical companies Momentive Performance Materials Holdings Inc. and Hexion LLC said Monday they have agreed to combine to create one of the world's largest specialty chemicals and materials companies. Terms of the deal were not disclosed.
Hexion makes resins for wood and industrial markets. Momentive makes silicon and other specialty materials.
The boards of both companies have approved the deal and expect it will close on Oct. 1.
The new company will operate under the Momentive Performance Materials name, but the companies said their capital structures will remain separate and in place. It will be based at Hexion's home base in Columbus, Ohio, but it will keep the silicon business in Momentive's base in Albany, N.Y.
Hexion's Chairman and CEO Craig O. Morrison will take those roles at the combined company upon completion of the deal.
Momentive's President and CEO Dr. Jonathan Rich will join the new company's board.
The deal doesn't require additional financing, the companies said.