Materion Corporation announced this week that it has completed the previously announced acquisition of the target materials business of the Heraeus Group, of Hanau, Germany, for approximately $30 million. The acquisition strengthens Materion's position in precious and non-precious target materials for MEMS, photovoltaic, display and semiconductor markets. The business, now operating within the Materion Advanced Materials business segment in Buffalo, New York is expected to generate approximately $50 to $60 million in new value-added sales on an annualized basis and be accretive to 2017 earnings. Materion Advanced Materials reported value-added sales of $176.3 million in 2016.
Materion Advanced Materials is a supplier of precious metals to the MEMS industry as well as microelectronic packaging for the semiconductor, MEMS, wireless and LED markets. With the next generation of MEMS devices requiring PVD materials with even higher purities and more precise stoichiometries than those currently available, Materion specializes in highly engineered customized PVD products. Their R&D team claims that it has developed hundreds of new PVD alloys and compounds for use in semiconductor, MEMS, and memory industries. Materion, through its acquisition of Heraeus, gains precious and non-precious metal sputtering target manufacturing capability in Europe, Asia, and the U.S. and a highly specialized workforce of 135 employees.
"Beyond accelerating and solidifying our global materials offering in semiconductor and display, the acquisition provides diversification, critical mass and new opportunities in other growing target-related areas where Materion has not enjoyed as strong [of] a position including glass and photovoltaics. This truly is a winning combination," said Donald Klimkowicz, President of Materion Advanced Materials.
Materion Corporation is headquartered in Mayfield Heights, Ohio. The company, through its wholly owned subsidiaries, supplies highly engineered advanced enabling materials to global markets. Products include precious and non-precious specialty metals, inorganic chemicals and powders, specialty coatings, specialty engineered beryllium alloys, beryllium and beryllium composites, and engineered clad and plated metal systems.
"This transaction is the latest in a series of advanced materials acquisitions made by Materion since 2005 to augment our growth and further our diversification into a leading advanced materials organization. I am very excited about the prospects for future growth that this acquisition brings us in existing and new markets, and how closely the values and culture of the Heraeus employees who join us match with our own. We welcome them to the Materion family." said Materion CEO Richard Hipple.
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