Electronics Production | March 13, 2006
OMG acquires Plaschem
OM Group, Inc. announced that it has entered into an agreement to acquire Plaschem Specialty Products Pte Ltd. and its subsidiaries. Terms of the transaction were not announced, but the company believes that the addition of Plaschem would be accretive to earnings in the first year.
Headquartered in Singapore, Plaschem develops and produces specialty chemicals for printed circuit board chemistries, semiconductor chemistries and general metal finishing. The company's operations include a plant in Singapore and an integrated manufacturing, research and technical support facility in the Peoples Republic of China near the Shanghai area. The company generated sales of approximately US$11 million in 2005. Mr. G.C. Tan, Plaschem's founder, will remain with the company. “While Plaschem would offer us modest but important sales initially, we believe the proposed acquisition is significant for two reasons,” said Joe Scaminace, chairman and chief executive officer. “First, it would greatly accelerate our market and product line expansion strategy for our current electronic chemicals business, which we consider to be a critical growth engine for OMG going forward. “Second, with its strong and dedicated work force, state-of-the-art manufacturing facilities and established sales and distribution network, Plaschem creates a true strategic beachhead for our companywide efforts in the Asia-Pacific region.” Scaminace added that Plaschem should be a good cultural fit within OMG, given its complementary technologies, efficient operations and financial discipline. The transaction is expected to be completed by the end of the first quarter subject to the delivery of final documentation and other customary conditions.