LONDON OM Group is buying Rockwood Holdings Inc's electronics materials business for about $265 million in cash, excluding its operations in France , which is subject to a put option for an additional price of about $50 million.
Rockwood’s electronics business includes an ultra-pure chemicals operation, printed circuit board chemicals sales and a photomasks business. Last year the segment, excluding its wafer reclaim business, had sales of $187 million and generated profits of about $35.4 million.
The businesses employ approximately 700 people and have locations in the U.S., the U.K., France, Taiwan, Singapore and China.
The PCB Chemicals business operates as Electrochemicals, Inc. while the Photomasks operation manufactures photo-imaging masks and reticles for the semiconductor, optoelectronics and microelectronics industries under the Compugraphics brand name.
OM Group (Cleveland, Ohio) said the deal is expected to be completed by the end of the year subject to regulatory approvals.
Joseph Scaminace, chairman and chief executive officer of OM Group, said in a statement Monday (Oct. 8): "These are attractive, profitable, cash-generating businesses that participate in high-growth markets and have a global asset base that will broaden our geographic footprint. They fit precisely with our transformation strategy and match up well with our current portfolio. We view this as an enabling acquisition that will allow us to build on our existing Electronic Chemicals presence through other synergistic transitions over the next two to three years."
Commenting on the transaction, Seifi Ghasemi, Rockwood’s Chairman and CEO, said : "This is in line with our stated strategy of focusing on our core businesses. We have already disposed of two non-core businesses and can now focus our management efforts to further enhance our core businesses."
Rockwood (Princeton, N.J) is a major specialty chemicals group that operates in several industry sectors with a range of pigments and additives.