Date Announced: 20 Oct 2011
Deal gives US company an Asian manufacturing base.
MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)-- Materion Corporation (NYSE:MTRN - News) 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).
Web Site: www.materion.com