Ad
Ad
Ad
Ad
Ad
Ad
Ad
Ad
PCB |

OM Group buys PCB Chemicals business

OM Group, Inc. has agreed to acquire all of Rockwood Holdings, Inc's Electronics business, excluding its French entity, for approximately $265 million in cash.

Rockwood's French electronic chemicals business is subject to a put option for an additional purchase price of approximately $50 million. The acquisition is expected to close by the end of 2007 and is subject to regulatory approval. The businesses supply customers with chemicals used in the manufacture of semiconductors and printed circuit boards as well as photo-imaging masks primarily for semiconductor and photovoltaic manufacturers. "These are attractive, profitable, cash-generating businesses that participate in high-growth markets and have a global asset base that will broaden our geographic footprint," said Joseph M. Scaminace, chairman and chief executive officer. "Moreover, they fit precisely with our transformation strategy and match up well with our current portfolio. We view this as an enabling acquisition that will allow us to build on our existing Electronic Chemicals presence through other synergistic transitions over the next two to three years." The Rockwood Electronics businesses, which had combined sales of $187 million in 2006, consist of Printed Circuit Board (PCB) Chemicals, Ultra Pure Chemicals (UPC) and Photomasks. The businesses employ approximately 700 people and have locations in the United States, the United Kingdom, France, Taiwan, Singapore and China. "The businesses we are acquiring are led by strong management teams with extensive experience in the semiconductor industry," said Scaminace. "This will be a tremendous asset as we take advantage of the many opportunities to grow the Electronic Chemicals business." Scaminace noted that the continued growth of the Electronic Chemicals platform will meet a longstanding strategic objective to deliver more sustainable and predictable financial performance by reducing OMG's exposure to metal price volatility. OM Group's long-range growth strategy includes continued product innovation as well as tactical and strategic acquisitions. The strategy is part of a transformational process designed to deliver sustainable and profitable volume growth, drive consistent financial performance and build long-term shareholder value. Through the successful execution of this strategy, the company expects to achieve consolidated revenues of $2 billion to $4 billion by 2010 and rank in the top quartile of specialty chemical and specialty material companies in terms of EBITDA margins and other financial metrics. Over the past two years, OMG has already divested its commodity Nickel business, retired high-yield debt, implemented broad-based operational excellence initiatives, reshaped and expanded its board of directors, and completed a tactical acquisition in its existing Specialties business. OMG expects the Rockwood transaction, which is subject to standard closing conditions, to be accretive to earnings in 2008.

Ad
Ad
Load more news
March 28 2024 10:16 am V22.4.20-2
Ad
Ad