The terms of the agreement have not been disclosed. The transaction is subject to customary conditions including governmental reviews.

The Momentive business to be purchased by PCCR includes manufacturing locations in Illinois, Texas, Georgia and California. The business had 2010 sales of approximately US$230 million and employs 225 people, who are expected to join PCCR when the sale is finalised.

“This business is an excellent fit with our existing operations in speciality chemicals and will provide us with a significant new presence in the North American marketplace in this industry,” says Andrea C. Bonomi, Chairman of Investindustrial.

Investindustrial is an independent investment group with €2.1 billion (US$3.0 billion) in assets under management and offices in Europe, the USA and Asia. It owns Italian company Polynt, a manufacturer of intermediate polymers and resins.

Momentive was formed in 2010 through the combination of entities that own Momentive Performance Materials and Hexion Specialty Chemicals. The company is controlled by investment funds affiliated with Apollo Global Management LLC. Momentive consists of Momentive Specialty Chemicals Inc and Momentive Performance Materials Inc and specialises in speciality chemicals and materials for industrial and consumer products. Momentive Specialty Chemicals, based in Columbus, Ohio, specialises in thermoset resins.