Jul 11 2007
Ceradyne, Inc. announced today that it has signed a Purchase Agreement to acquire EaglePicher Boron LLC ("EP Boron") located in Quapaw, Oklahoma, for approximately $69.0 million in cash. EP Boron was established in the early 1970's to produce the boron isotope B10. This isotope is a strong neutron absorber and is used for both nuclear waste containment and nuclear power plant neutron radiation control. EP Boron also produces complementary chemical isotopes used in the normal operation and control of nuclear power plants.
Ceradyne anticipates that this acquisition will further strengthen its entry, announced earlier last year, into the nuclear waste containment and other nuclear power plant related ceramic materials markets.
The remaining boron isotope produced by EP Boron is B11 which is used as an additive to semiconductor grade silicon as a "doping" agent and in other semiconductor processes where ultra high purity boron is required. This growing market currently accounts for approximately 40% of EP Boron sales.
EP Boron sales were approximately $23.0 million in their fiscal year ending November 30, 2006 with strong operating margins.
David Reed, Ceradyne's President of North American Operations, commented: "I am very excited about the pending acquisition of EaglePicher Boron. It fits perfectly in Ceradyne's longer range strategy. We anticipate it will be accretive, synergistic with our current efforts in the nuclear and semiconductor markets, and meet our diversification objective. We also believe that Ceradyne's entrepreneurial culture and global strategy will accelerate EaglePicher Boron's growth. We anticipate that their management will remain in place and become an integral part of the Ceradyne team."
The closing is anticipated within 60 days, pending necessary regulatory approvals.