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[May 2004]
Ceradyne Acquires Assets of Quest Technology
Ceradyne Inc (Costa Mesa, CA, USA) has purchased the assets and business of Quest Technology, LP (San Diego, CA, USA). Quest Technology is a privately held firm focusing exclusively on the injection moulding of technical ceramics. The company is headed by its Founder and President, Stan Zalkin, who will remain in his position as the senior executive at Quest.
Joel Moskowitz, Ceradyne's CEO, said: "One of the chief markets Quest and now Ceradyne will be focused on will be complicated shaped components for medical applications, both as implants as well as in medical instruments such as endoscopic tips.
"Quest's technical ceramic injection molding technology will allow Ceradyne to produce precision, complicated, high volume, small, technical ceramic parts without the costly requirements of secondary machining operations.
"We believe that the Quest proprietary injection molding forming technology adds a totally new dimension to Ceradyne's advanced technical ceramic capabilities. We are very excited about this acquisition and plan to keep Mr Zalkin and his experienced staff in place in San Diego. What we bring to the acquisition will be marketing presence, new ceramic materials and the financial strength to grow this already profitable company. Based on past performance and future projections, we expect the acquisition of Quest to be accretive."
The purchase price was approximately US$2.5 million, consisting of 71,397 newly issued shares of Ceradyne common stock, cash payments totalling approximately US$300,000 and the assumption of certain liabilities. Quest's revenues for 2003 were approximately US$1.5 million.
ENDS