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[July 2004]
Ceradyne to Acquire ESK Ceramics
Ceradyne Inc (Costa Mesa, CA, USA) has signed a definitive agreement to acquire ESK Ceramics (Kempten, Germany), the industrial and technical ceramic manufacturer, for approximately €111.4 million, in cash payable at closing. The purchase price will be financed using existing cash and debt from a new credit facility of US$160 million to be provided by a syndicate of banks led by Wachovia Capital Markets LLC.
The acquisition is subject to certain closing conditions, is expected to be completed in the third quarter of 2004 and is projected to be immediately accretive to Ceradyne.
ESK, which had 2003 sales of around US$90 million, is being sold to Ceradyne by its parent company, Wacker-Chemie. ESK was founded in 1922 to produce non-oxide powders and technical ceramics. The company - then known as Elektroschmelzwerk Kempten AG - was acquired by Wacker-Chemie GmbH in 1933 and has been operating under the name Wacker Ceramics since 2001.
Ceradyne intends to revert back to the original ESK name and the well recognised logo that goes with it. The company's major product lines include its world-wide position as a prime supplier of boron carbide powder, which is the start material for much of Ceradyne's lightweight ceramic armour that now accounts for over 60% of Ceradyne's sales.
ESK is considered a world leader in several industrial categories of advanced technical ceramics, accounting for over 90% of its sales. Ceradyne first began producing boron carbide ceramic armour with ESK powders back in 1971.
ENDS