Entegris announced 14 July 2008 that it has signed a definitive agreement to acquire privately-held Poco Graphite, Inc., in an all-cash transaction valued at USD 158 million.
Based in Decatur, Texas,…
Entegris announced 14 July 2008 that it has signed a definitive agreement to acquire privately-held Poco Graphite, Inc., in an all-cash transaction valued at USD 158 million. Based in Decatur, Texas, POCO is a leading provider of process-critical, graphite-based consumables and finished products used in a variety of markets, including semiconductor, EDM (electrical discharge machining), medical, opto-electronic, glass container manufacturing, aerospace and specialty industrial. In 2007, POCO generated revenues of more than USD 60 million, of which approximately 40% was from sales to semiconductor-related customers. The transaction, which is expected to be accretive to Entegris“ earnings per share in 2009, will extend Entegris“ position in the semiconductor market as a major provider of process-critical consumables and related products and services, and will add new complementary growth vectors in other high-performance industries. “This transaction adds to our core materials science competencies, significantly broadens our range of high-performance consumable offerings, and enables us serve more customers in more ways”, said Gideon Argov, president and chief executive officer of Entegris. “As such, it is an opportunity to increase our revenues and earnings, accelerate our growth, create economies of scale and build value for our shareholders”. “POCO, together with the Entegris Specialty Coatings business that we acquired in August 2007, will form the foundation of a materials-based, consumable products business that has a strong presence in semiconductors but is also well-positioned in other growth areas. With 60% of its revenue coming from outside the semiconductor industry, POCO provides us with existing sales and growth opportunities in the medical, aerospace and specialty industrial markets”, Mr. Argov said. Corey Rucci, president and chief operating officer of Poco Graphite, said: “Highly engineered graphite and silicon carbide consumables are currently an expanding market that is more than 90% recurring and that is expected to grow by more than 10% a year. We“re excited to become part of Entegris, a relationship that should create new opportunities for our products, our customers and, above all, our people”. Mr. Rucci will lead this new Entegris business following completion of the transaction. Products offered and industries served by POCO include such semiconductor-related consumables as electrodes, crucibles and wafer handlers; consumables used in Electrical Discharge Machining (EDM), a process utilized in applications that require very fine tolerances and geometries difficult to achieve with standard machining techniques; industrial consumables, such as silicon carbide replacements for beryllium components, bearings, bushings and engine seals; and consumables for the glass industry to transport and handle containers at high temperatures. Completion of the transaction is subject to Hart-Scott-Rodino review and other customary conditions. Upon completion, which is expected to occur in the 3Q 2008, POCO will become a wholly owned, Decatur, Texas-based subsidiary of Entegris. Entegris is a leading provider of a wide range of products for purifying, protecting and transporting critical materials used in processing and manufacturing in the semiconductor and other high-tech industries. Entegris is ISO 9001 certified and has manufacturing, customer service and/or research facilities in the United States, China, France, Germany, India, Israel, Japan, Malaysia, Singapore, South Korea and Taiwan.