The global materials supplier Entegris has signed a definitive agreement to acquire the privately held US-based company Poco Graphite Inc. in a cash transaction valued at $158 million. The transaction, expected to be accretive to Entegris’s earnings per share in 2009, will extend that US company’s position in the semiconductor market as a major global provider of process-critical consumables and related products and services, and will add complementary growth opportunities in other high-performance industries.
Based in Decatur, Texas, Poco Graphite is a leading provider of process-critical graphite-based consumables and finished products used in a variety of markets, including electrical discharge machining (EDM), semiconductor fabrication, medical technology, optoelectronics, aerospace, and specialty industries. In 2007, the company generated revenues of more than $60 million, of which approximately 40% was from sales to semiconductor-related customers.
Products offered by Poco Graphite include semiconductor-related electrodes, crucibles, and wafer handlers; EDM consumables; industrial consumables, such as silicon carbide replacements for beryllium components, bearings, bushings, and engine seals; and consumables for the glass industry allowing the transportation and handling of containers at high temperatures.
“This transaction adds to our core materials-science competencies, significantly broadens our range of high-performance consumable offerings, and enables us serve more customers in more ways,” said Gideon Argov, president and chief executive officer of Entegris, which is headquartered in Chaska, Minnesota.
“Poco, together with the Entegris Specialty Coatings business that we acquired in August 2007, will form the foundation of a materials-based consumable-products business that has a strong presence in semiconductors but is also well-positioned in other growth areas,” Argov continued. “With 60% of its revenue coming from outside the semiconductor industry, Poco provides us with existing sales and growth opportunities in the medical, aerospace, and specialty industrial markets.”
Corey Rucci, president and chief operating officer of Poco Graphite, noted that its highly engineered graphite and silicon carbide consumables represent an expanding market that is more than 90% recurring and should grow by more than 10% annually. He called the new association with Entegris “a relationship that should create new opportunities for our products, our customers, and, above all, our people.”
Rucci will lead the new Entegris business following completion of the transaction, which is expected to occur during the third quarter of 2008. Poco Graphite then becomes a wholly owned subsidiary of Entegris.
related catagory Industrial News