Momentive Puts Formaldehyde Unit On Block

Momentive Performance Materials Holdings has put its formaldehyde and resins unit on the block and the unit could be valued at between $800 million to $1 billion, several sources familiar with the matter said.

Momentive, owned by Apollo Global Management, is trying to shed the business before an IPO, those sources said. It is likely to attract interest from private equity firms, one of the sources said.

In the first quarter, the company's formaldehyde and forest products resins unit had earnings before interest, taxes, depreciation and amortization of around $45 million.

Morgan Stanley and Goldman Sachs are representing Momentive in the sale, the sources said.

Momentive filed in April to raise up to $862.5 million in its IPO. The company was formed last year when private equity company Apollo merged its two specialty chemicals companies - Hexion Specialty Chemicals and Momentive.

Apollo, Morgan Stanley and Goldman Sachs declined to comment.