Cabot Microelectronics Corporation Announces Agreement to Acquire Epoch Material Co., Ltd.
December 19 2008 - 2:26AM
Business Wire
Cabot Microelectronics Corporation (Nasdaq: CCMP), the world�s
leading supplier of chemical mechanical planarization (CMP)
polishing slurries to the semiconductor industry, announced today
that it has entered into a definitive agreement to acquire the
shares of Epoch Material Co., Ltd. (Epoch), a consolidated
subsidiary of Eternal Chemical Co., Ltd. (Eternal) (TAI: 1717).
Epoch is a Taiwan-based company specializing in the development,
manufacture and sale of copper CMP slurries and CMP cleaning
solutions to the semiconductor industry, as well as color filter
slurries to the liquid crystal display (LCD) industry. Under the
share purchase agreement, Cabot Microelectronics will purchase
Epoch for a total purchase price of US$66 million. Cabot
Microelectronics will initially obtain 90 percent of Epoch�s stock,
with the remaining 10 percent to be transferred eighteen months
later. During this interim period, Eternal will hold a minority
ownership interest in Epoch. Cabot Microelectronics� acquisition of
Epoch is aligned with its strategy to strengthen and grow its core
CMP consumables business. The company expects to capitalize on
Epoch�s prominent technology in copper CMP slurries, strong
customer relationships and extensive infrastructure in Taiwan.
Additionally, Epoch�s LCD color filter slurry business represents a
strategic fit with Cabot Microelectronics� engineered surface
finishes (ESF) business, whereby the company seeks to utilize its
expertise in CMP slurry formulation, materials and polishing
techniques developed for the semiconductor industry and apply it to
other demanding surface modification applications. �We are excited
to partner with Epoch to combine our efforts and enhance our
collective ability to deliver world-class products and support our
customers around the world. Epoch has a strong presence in Taiwan,
where we currently have more revenue in our core CMP consumables
business than in any other country. Given our substantial customer
base in Taiwan, we view this transaction as an attractive means to
expand our presence there and leverage the strong local
relationships, business knowledge and infrastructure that Epoch has
built over time,� stated Mr. William Noglows, Chairman and CEO of
Cabot Microelectronics Corporation. �Eternal has nurtured and
supported Epoch in its development to date, and we are pleased to
have Eternal�s ongoing involvement through its continued minority
ownership in Epoch in the near term. Additionally, we believe this
transaction represents an excellent opportunity to strengthen our
copper CMP slurry leadership by leveraging our combined technology
teams and development infrastructure to innovate high-performance,
low cost of ownership products.� Dr. Tsung-Ho Lee, Epoch�s General
Manager, commented, �We are delighted to become an integral part of
Cabot Microelectronics� core CMP business. We believe that by
joining forces with the leader in CMP slurries, we will have access
to significantly more resources, securing a brighter future and
greater growth prospects for our employees. We look forward to
expanding our presence outside of Taiwan and China through the
utilization of Cabot Microelectronics� global sales infrastructure
and close customer relationships. Both companies have a passion for
technology innovation and close customer engagement, and we look
forward to integrating our similar entrepreneurial cultures and
achieving our goals together.� Epoch, established in 1999, expects
to achieve around US$28 million in revenue in 2008. It has grown to
approximately 150 employees and operates manufacturing, research
and development, warehousing and administrative functions from its
headquarters in the Kaohsiung Science Park in southern Taiwan. As a
result of this transaction, Cabot Microelectronics expects to
improve its overall cost structure by capitalizing on the
collective best-in-class technologies, employee talent and global
infrastructure of both companies. Initially, cost savings are
expected to be achieved principally through eliminating overlapping
efforts, as well as capitalizing on supply chain management
efficiencies, through the utilization of a shared global
infrastructure. In the longer term, Cabot Microelectronics aims to
leverage Epoch�s low cost, world-class manufacturing operations in
Taiwan to manufacture additional CMP slurries for customers in the
region. The total purchase price of US$66 million is expected to be
paid by Cabot Microelectronics from its available cash. Completion
of the transaction is subject to customary closing conditions and
regulatory approvals. CONFERENCE CALL Cabot Microelectronics will
host a conference call to discuss the acquisition on December 19,
2008 at 10:00 a.m. Central Time. The live conference call will be
available via webcast from the company�s website, www.cabotcmp.com,
or by phone at (866) 804-6920. Callers outside the U.S. can dial
(857) 350-1666. The conference code for the call is 90466596. A
replay will be available through January 16, 2009 via webcast at
www.cabotcmp.com. A transcript of the formal comments made during
the conference call will also be available in the Investor
Relations section of the company�s website. ABOUT CABOT
MICROELECTRONICS CORPORATION Cabot Microelectronics Corporation,
headquartered in Aurora, Illinois, is the world's leading supplier
of CMP slurries used in semiconductor and data storage
manufacturing. The company's products play a critical role in the
production of the most advanced semiconductor devices, enabling the
manufacture of smaller, faster and more complex devices by its
customers. Since becoming an independent public company in 2000,
the company has grown to approximately 800 employees. The company
is also leveraging its expertise in CMP slurry formulation,
materials and polishing techniques developed for the semiconductor
industry and applying it to demanding surface modification
applications where shaping, enabling and enhancing the performance
of surfaces is critical to success. For more information about
Cabot Microelectronics Corporation, visit www.cabotcmp.com or
contact Amy Ford, Director of Investor Relations at (630) 499-2600.
ABOUT EPOCH MATERIAL CO., LTD Epoch Material Co., Ltd.,
headquartered in Taiwan, is a significant manufacturer of copper
CMP slurries and CMP cleaning solutions, with products that were
first introduced into the semiconductor industry in 1999. Since
then, the company has grown to approximately 150 employees and has
established its headquarters, a factory and research and
development center in the Kaohsiung Science Park in southern
Taiwan. Epoch is a consolidated subsidiary of Eternal Chemical Co.,
Ltd., a major resin and electronic chemicals manufacturer in
Taiwan. SAFE HARBOR STATEMENT This news release may include
statements that constitute �forward looking statements� within the
meaning of federal securities regulations. These forward-looking
statements include statements related to: future sales and
operating results; company and industry growth or trends; growth of
the markets in which the company participates; international events
or various economic factors; product performance; the generation,
protection and acquisition of intellectual property, and litigation
related to such intellectual property; new product introductions;
development of new products, technologies and markets; the
acquisition of or investment in other entities; uses and investment
of the company�s cash balance; and the construction of facilities
by Cabot Microelectronics Corporation. Risks, uncertainties, and
other factors related to the referenced transaction include the
possibility that the transaction will not close or that the closing
may be delayed; the reaction of customers of Cabot Microelectronics
Corporation and Epoch to the transaction; our ability to
successfully integrate Epoch�s operations and employees; our
ability to maintain, develop and grow Epoch�s business after the
closing and to realize the expected benefits of the acquisition;
and general economic and business conditions. In addition, please
refer to those risk factors described from time to time in Cabot
Microelectronics� filings with the Securities and Exchange
Commission (SEC), that could cause actual results to differ
materially from those described by these forward-looking
statements. In particular, see �Risk Factors" in the company�s
annual report on Form 10-K for the fiscal year ended September 30,
2008, filed with the SEC. Cabot Microelectronics and Epoch assume
no obligation to update this forward-looking information.
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