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[July 2008]
Ceradyne to Acquire SemEquip
Ceradyne Inc (Costa Mesa, CA, USA) has signed a definitive Agreement and Plan of Merger to acquire SemEquip Inc for approximately US$25 million in cash at closing, plus contingent payments of up to US$100 million during the 15-year period following completion of the merger based upon revenues achieved over that period by SemEquip.
A portion of the closing date consideration and the contingent consideration to be paid by Ceradyne relates to a pre-closing commitment by SemEquip to pay incentive compensation to several of its employees and advisors. This incentive compensation will not increase the total consideration that Ceradyne will pay for the acquisition, but it will require Ceradyne to record a pre-tax accounting charge estimated to be in the range of US$9 million to US$11 million in the quarter during which the acquisition is completed.
Privately held SemEquip, based in North Billerica, Massachusetts, USA, is a leader in the development of cluster ion implantation sub-systems and advanced ion source materials for the manufacture of logic and memory chips. SemEquip has a significant patent portfolio related to the use of cluster chemicals in semiconductor ion implantation. The company’s technologies enable the utilisation of cluster beam ion implantation for manufacturing the world's most advanced integrated circuits at the lowest cost and highest throughput.
This acquisition will expand Ceradyne Boron Products' business and will significantly extend Ceradyne’s market opportunity in the semiconductor industry. Ceradyne acquired Ceradyne Boron Products LLC (formerly EaglePicher Boron LLC) in August 2007. Ceradyne Boron Products mainly produces the boron isotopes 10B and 11B.
The boron isotope 11B (Enriched Boron) is used as a doping agent in semiconductor processes where ultra-high purity isotopic boron is required. This growing market currently accounts for approximately 40% of Ceradyne Boron Products’ sales.
Enriched Boron is the key isotope used to manufacture the B18H22 ‘cluster boron’ molecule that SemEquip’s cluster ion beam implantation systems use to achieve next-generation performance in semiconductor ion implantation. B18H22 and related Cluster Chemicals will be manufactured by the Ceradyne Boron Products facility in Quapaw, Oklahoma.
www.ceradyne.com
ENDS