MIDDLEBURY, CT -- Crompton Corp. will sell its OSi Specialties organosilicones business to General Electric Co.'s GE Specialty Materials business for $645 million in cash and the transfer of GE's Specialty Chemicals business to Crompton. The transaction is expected to be completed in the third quarter, pending regulatory approval.

Under the agreement, Crompton also will receive quarterly "earn-out" payments for three years based on the combined performance of GE's existing silicones business and the organosilicones business it is acquiring from Crompton.

OSi Specialties is a supplier of organofunctional silanes used as coupling agents in coatings, adhesives, sealants, and other materials, and also manufactures urethane additives and specialty silicones. The business will become part of GE Specialty Materials' GE Silicones division.