US-based materials company Materion has completed its acquisition of Heraeus’ target materials business for approximately $30 million.
The acquisition strengthens Materion's position in precious and non-precious target materials for the architectural and automotive glass, photovoltaic, display and semiconductor markets.
The Heraeus target materials business, based in Hanau, Germany, will now operate within the Materion Advanced Materials business segment, is expected to generate approximately $50 to $60 million in new value-added sales on an annualised basis and be accretive to 2017 earnings.
Materion Advanced Materials reported value-added sales of $176.3 million in 2016.
Through this transaction, Materion's Advanced Materials segment gains target manufacturing capability in Europe, Asia and the US, as well as new technologies and a highly specialised workforce of 135 employees.
Donald G. Klimkowicz, president, Materion Advanced Materials, commented: "Beyond accelerating and solidifying our global materials offering in semiconductor and display, the acquisition provides diversification, critical mass and new opportunities in other growing target-related areas where Materion has not enjoyed as strong a position including glass and photovoltaic. This truly is a winning combination."
Materion CEO Richard J. Hipple, said: "This transaction is the latest in a series of advanced materials acquisitions made by Materion since 2005 to augment our growth and further our diversification into a leading advanced materials organisation.
“I am very excited about the prospects for future growth that this acquisition brings us in existing and new markets, and how closely the values and culture of the Heraeus employees who join us match with our own. We welcome them to the Materion family."