EaglePicher Corporation Reaches Agreement to Sell EaglePicher Boron, LLC to Ceradyne, Inc. for $69 Million
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INKSTER, Mich., June 27 /-- EaglePicher Corporation (EaglePicher) today announced that it has entered into an agreement to sell EaglePicher Boron, LLC (EP Boron) to Ceradyne, Inc. (NASDAQ:CRDN). The two companies have signed a Purchase Agreement for approximately $69 million in cash.
EP Boron, located in Quapaw, Oklahoma, has produced enriched boron isotopes and products containing other stable isotopes for the nuclear, semiconductor and hazardous materials industries. Its products include isotope B11, an additive to semiconductor grade silicon, and isotope B10, a neutron absorber.
Ceradyne develops, manufactures, and markets advanced technical ceramic products and components for defense, industrial, automotive/diesel, and commercial applications.
"EP Boron has been the leader in supplying boron isotope products to the nuclear and semiconductor industry," said David Treadwell, president and CEO of EaglePicher. "EP Boron is a great fit with Ceradyne. We are pleased that this will provide a solid growth opportunity for the people and customers of Boron."
EP Boron sales were approximately $23 million in the fiscal year ending November 30, 2006. It is anticipated that the management team at EP Boron will remain in place.
Over the last 18 months EaglePicher has focused on operational excellence and technological innovation throughout its business portfolio. It has also identified strategic players who could grow a particular business. "Ceradyne is an excellent example of that effort," said Treadwell.
"I am very excited about the pending acquisition of EP Boron," said David Reed, Ceradyne's President of North American Operations. "It fits perfectly in Ceradyne's longer range strategy."
The sale is expected to close within 60 days, pending necessary regulatory approvals.
Jefferies Quarterdeck, a division of Jefferies & Company, Inc., acted as financial advisor to EaglePicher Corporation in this transaction.
EaglePicher Corporation, based in Inkster, Mich., operates businesses in automotive, defense, space, commercial power, and medical. Its other companies include Hillsdale Automotive, LLC; Wolverine Advanced Materials, LLC; EaglePicher Technologies, LLC; EaglePicher Medical Power, and EP Minerals, LLC. For more information, visit www.eaglepicher.com.
Source: EaglePicher Corporation
CONTACT:Maria Leonhauser, +1-313-567-5080, leonhauser@franco.com, for EaglePicher Corporation
Web site: www.eaglepicher.com/
