MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--
Materion Corporation (NYSE:MTRN) announced today that the Company,
through its wholly owned subsidiary, Materion Advanced Materials
Technologies and Services Inc., has acquired EIS Optics Limited.
The transaction, valued at approximately $24 million, was financed with
internally generated cash and borrowings under the Company's $325
million revolving line of credit. Costs related to the acquisition will
negatively impact 2011 earnings by approximately $0.03 per share in the
third quarter and up to approximately $0.10 per share in the fourth
quarter.
EIS Optics is a leading producer of optical thin film filters, glass
processing, lithography and optical subassemblies that allow for the
precision management of light in a broad range of end-use applications
throughout the projection display, entertainment lighting, sensors,
medical instruments and gaming industries. Products manufactured with
EIS Optics materials and assemblies include projectors, cinema
components, HDTV, high-end hand-held cameras and gaming systems. EIS
Optics is the world's largest manufacturer of color wheels for color
splitting in field sequential lighting management in digital production,
video production and video imaging.
EIS Optics operates a modern, 97,000 square foot manufacturing site in
Shanghai, China that employs 350. The Shanghai facility includes
state-of-the-art clean rooms with vacuum deposition or sputter systems,
and adjacent processes, such as assembly, to support a full product
offering. EIS Optics and its predecessor companies have more than 60
years experience in the industry.
The acquisition brings an Asian manufacturing base that will enable
Materion to better serve their rapidly growing Asian optical coatings
businesses. EIS Optics also complements Materion's existing leadership
position in thin film optical filters that enable complex technologies
and components throughout the defense, aerospace, medical, energy,
semiconductor, telecommunications, lighting and astronomy markets. When
combined with Materion's knowledge and expertise in materials and
optical coatings, the acquisition is expected to enable the development
of new technology and extend the range of applications which would drive
future growth.
Commenting on the acquisition, Richard J. Hipple, Chairman, President
and Chief Executive Officer, said, "We are very pleased to welcome our
new associates in Shanghai and continue the transformation of the
Materion organization by further broadening our advanced materials
technology base and product portfolio. The integration of the EIS Optics
manufacturing facility in Shanghai and its talented and dedicated
workforce into Materion provides a promising platform for future growth
and immediately widens our geographic reach, value add services, and
optical materials capabilities in fast-growing global markets."
In recent years, the Company has made a number of strategic acquisitions
to augment its precision thin film optical filters and coatings
capabilities. These include the purchase of Barr Associates, Inc. of
Westford, Massachusetts; Thin Film Technology, Inc. of Buellton,
California (both are producers of precision optical coatings, thin film
hybrid circuits and highly engineered thin film coatings and services);
and Techni-Met, LLC of Windsor, Connecticut, a manufacturer of large
area precision thin films (primarily supplying a wide range of high-end
medical applications).
FORWARD-LOOKING STATEMENTS
Portions of the narrative set forth in this document that are not
statements of historical or current facts are forward-looking
statements, in particular the estimated impact of the acquisition on
earnings for the third and fourth quarters of 2011 and for 2012 provided
above. Our actual future performance may materially differ from that
contemplated by the forward-looking statements as a result of a variety
of factors. These factors include, in addition to those mentioned
elsewhere herein:
-
The global economy;
-
The condition of the markets which we serve, whether defined
geographically or by segment, with the major market segments being:
consumer electronics, defense and science, industrial and commercial
aerospace, automotive electronics, telecom infrastructure, appliance,
medical and energy;
-
Changes in product mix and the financial condition of customers;
-
Actual sales, operating rates and margins for 2011 and 2012;
-
Our success in developing and introducing new products and new product
ramp-up rates;
-
Our success in passing through the costs of raw materials to customers
or otherwise mitigating fluctuating prices for those materials,
including the impact of fluctuating prices on inventory values;
-
Our success in integrating acquired businesses, including EIS Optics;
-
Our success in implementing our strategic plans and the timely and
successful completion and start-up of any capital projects, including
the new primary beryllium facility being constructed in Elmore, Ohio;
-
The availability of adequate lines of credit and the associated
interest rates;
-
The impact of the results of acquisitions on our ability to achieve
fully the strategic and financial objectives related to these
acquisitions;
-
Other financial factors, including the cost and availability of raw
materials (both base and precious metals), metal financing fees, tax
rates, exchange rates, pension costs and required cash contributions
and other employee benefit costs, energy costs, regulatory compliance
costs, the cost and availability of insurance, and the impact of the
Company's stock price on the cost of incentive compensation plans;
-
The uncertainties related to the impact of war, terrorist activities
and acts of God;
-
Changes in government regulatory requirements and the enactment of new
legislation that impacts our obligations and operations;
-
The conclusion of pending litigation matters in accordance with our
expectation that there will be no material adverse effects;
-
The timing and ability to achieve further efficiencies and synergies
resulting from our name change and business unit alignment under the
Materion name and Materion brand; and
-
The risk factors set forth in Part 1, Item 1A of our Annual Report on
Form 10-K for the year ended December 31, 2010.
Materion Corporation is headquartered in Mayfield Heights, Ohio. The
Company, through its wholly owned subsidiaries, supplies highly
engineered advanced enabling materials to global markets. Products
include precious and non-precious specialty metals, inorganic chemicals
and powders, specialty coatings, specialty engineered beryllium alloys,
beryllium and beryllium composites, and engineered clad and plated metal
systems.
Materion Corporation
Investor Contact:
Michael
C. Hasychak, 216-383-6823
mike.hasychak@materion.com
or
Media
Contact:
Patrick S. Carpenter, 216-383-6835
patrick.carpenter@materion.com
or
http://www.materion.com
Mayfield
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Source: Materion Corporation
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