MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--
Materion Corporation (NYSE: MTRN) announced today that it has entered
into a definitive agreement to acquire the principal portion of the
high-performance target materials business of the Heraeus Group of
Hanau, Germany. The acquisition is expected to be consummated in the
first quarter of 2017, subject to the satisfaction of regulatory
approvals and customary closing conditions.
Negotiations for Heraeus' magnetic data storage business in Singapore
continue and are not included in the definitive agreement announced
today. Materion and Heraeus decided to proceed with the principal
portion of the proposed acquisition announced in May 2016 in order to
begin the regulatory approval process that is not expected to be
required for the magnetic data storage business.
Heraeus' target materials business generates approximately $60 million
in annual value-added sales. The transaction purchase price is
approximately $30 million, which represents a 6 times multiple of
EBITDA. The target materials business is forecasted to be accretive to
earnings in 2017.
Heraeus manufactures precious and non-precious metal target materials
for the architectural and automotive glass, electronic display,
photovoltaic and semiconductor markets at facilities in Germany, Taiwan,
the United States and Singapore. Once acquired, the businesses will
operate within the Materion Advanced Materials business segment.
Commenting on the agreement, Donald G. Klimkowicz, President, Materion
Advanced Materials, said, "We are excited to have reached this milestone
toward acquiring this business. There are both complementary and unique
aspects inherent to both Materion's and Heraeus' target materials
offering and capabilities, which, once combined, will allow us to
enhance our position in traditional markets, widen our product breadth
and drive additional growth in new markets. This investment underscores
our commitment to the long-term future of the target materials business."
Added Richard J. Hipple, Materion Chairman, President and CEO, "This
planned acquisition is a compelling fit with our global growth strategy
and our criteria for investment by adding critical mass in target
materials underpinned by a broadened manufacturing presence in Europe,
Taiwan and the U.S., as well as the addition of some highly
differentiated technologies that will strengthen Materion's offering to
global customers. We are looking forward to welcoming Heraeus' very
talented target materials employees into the Materion family."
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161205005654/en/
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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