Ceradyne, Inc. Acquires Raw Materials Supplier Minco, Inc.
July 11 2007 - 7:30AM
Business Wire
Ceradyne, Inc. (Nasdaq: CRDN) announced today that it has acquired
Minco, Inc. in Midway, Tennessee, for approximately $27.5 million
in cash. Minco was founded in 1977 to manufacture and market fused
silica powders for a wide range of industrial applications. Minco�s
fusing process, which is the basis of its entire product line, is
based on its proprietary technology. Minco is a key supplier of raw
materials to Ceradyne�s Thermo Materials division in Scottdale,
Georgia. The Minco powders are used in Ceradyne�s high purity fused
silica ceramic crucibles for use in the manufacture of photovoltaic
polycrystalline silicon solar cells and will be extensively used in
the recently opened Ceradyne factory in Tianjin, China, for its
crucible product line. Minco�s annual sales are estimated to be in
the low $20 million range. It is a profitable venture and is
anticipated to be immediately accretive. Bruce Lockhart, Ceradyne,
Inc. Vice President and President of Ceradyne Thermo Materials,
commented: �I am extremely pleased and excited over this
acquisition. The acquisition assures us a quality supply of fused
silica powders to support our solar energy efforts, particularly in
China. Furthermore, it is anticipated that Minco�s strong position
in the supply of its materials for use in Precision Investment
Casting (PIC) will allow us to further support our strategy of
expanding our industrial base globally.� Lockhart further stated:
�Since Minco has been a supplier to Ceradyne Thermo Materials for
decades, we are acquainted and comfortable with its products and
its people. I anticipate that all Minco�s management will stay in
place.� Tom Cole, Minco President, stated, �We, at Minco, are
pleased with the acquisition and look forward to being part of the
Ceradyne team. Our ceramic technology culture fits Ceradyne�s
requirements and the joining of our raw materials base with
Ceradyne�s advanced technical ceramic products and markets will
result in a vertically integrated product line.� Grace Matthews,
Inc. advised Minco on the transaction. Teleconference Management
will conduct a conference call to discuss the Minco acquisition at
9:00 a.m. PDT on Thursday, July 12, 2007. To participate in the
teleconference, please call toll-free 877-717-3046 (or 706-634-6364
for international callers) approximately 10 minutes prior to the
start of the call. One may also listen to the teleconference live
via the Internet at www.ceradyne.com or www.earnings.com. For those
unable to attend, these Web sites will host an archive of the call.
A telephone playback will be available beginning at noon PDT on
July 12 through noon PDT on July 14. The playback can be accessed
by calling 800-642-1687 (or 706-645-9291 for international callers)
and providing Conference ID 6886272. Ceradyne develops,
manufactures, and markets advanced technical ceramic products and
components for defense, industrial, automotive/diesel, and
commercial applications. Additional information about the Company
can be found at www.ceradyne.com. Except for the historical
information contained herein, this press release contains
forward-looking statements regarding future events and the future
performance of Ceradyne that involve risks and uncertainties that
could cause actual results to differ materially from those
projected. Words such as �anticipates,� �believes,� �plans,�
�expects,� �intends,� �future,� and similar expressions are
intended to identify forward-looking statements. These risks and
uncertainties are described in the Company�s Annual Report on Form
10-K for the fiscal year ended dated December 31, 2006 and its
Quarterly Reports on Form 10-Q as filed with the U.S. Securities
and Exchange Commission.
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