April 18, 2002 – Sarasota, FL – Uniroyal Technology Corp. has reached an agreement to sell its Sterling Semiconductor Inc. subsidiary to Umicore USA Inc. The sale, contingent upon certain regulatory requirements, is anticipated to be completed in May 2002.
Under terms of the agreement, the purchase price includes a cash payment of approximately $13 million, including the refinancing of existing debt. The agreement also provides for certain contingent earn out arrangements tied to both short-term events (a maximum of $5 million) and longer term operating results of the acquired business (a maximum of $10 million).
Umicore USA will be issued a five-year warrant for approximately 3% of Uniroyal’s common stock. The final terms of the agreement are subject to any possible closing adjustments.
Sterling Semiconductor is part of Uniroyal’s Compound Semiconductor & Optoelectronics business segment.