Advanced materials producer based in Mayfield Heights Materion Corp. (NYSE: MTRN) announcement Monday morning September 20, that it agreed to acquire the electronic equipment business of HC Starck Solutions for $ 380 million.
The purchase of what is known as HCS-Electronic Materials, based in Newton, Mass., Is expected to close in the fourth quarter, subject to customary closing conditions, including regulatory approval, Materion said. in a press release. Press release.
HCS-Electronic Materials is a supplier of high purity tantalum sputtering targets, which Materion says are “important in manufacturing today’s advanced semiconductor chips.” Materion said the acquisition builds on its existing portfolio of electronic materials and thin-film target products, and “will significantly enhance the company’s position as a leading supplier to the strong semiconductor industry. growth”.
According to the release, HCS-Electronic Materials is expected to generate revenues of approximately $ 145 million in 2021 and Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately $ 29 million, which represents a margin of around $ 29 million. ‘Adjusted EBITDA of around 20%. The company has approximately 140 employees.
Following the closing of the transaction, HCS-Electronic Materials will be part of Materion’s Advanced Materials segment.
“HCS-Electronic Materials is a highly strategic and transformative acquisition that builds on our strong position in the semiconductor industry and supports our goals to exceed market growth, increase margins and generate product growth. Double-digit constant EPS, ”said Jugal, president and CEO of Materion. Vijayvargiya said in a statement. He said that HCS-Electronic Materials’ technology “extends our global reach and extends our product offering to major semiconductor chip manufacturers, as well as major customers in the industrial, aerospace and global industries. defense “.
The acquisition of HCS-Electronic Materials is structured as an equity investment. Materion said he plans to fund the transaction using a new term loan as well as borrowings from his revolving credit agreement.