CoorsTek agrees to $220 million buyout
Dec. 23, 2002 – Golden, CO – CoorsTek Inc., a semiconductor equipment maker, would be acquired for more than $220 million by a private investment group led by top CoorsTek management and other members of the Coors brewing family.
In a separate statement, CoorsTek said 4Q revenue would be lower than previously expected because of weak results from its semiconductor capital equipment component and assembly segments, reported Reuters.
Keystone Holdings LLC, which is headed by CoorsTek Chairman, President, and CEO John Coors, will pay $26/share for the 8.6 million shares of CoorsTek it does not already own, CoorsTek said.
Coors and some other members of the group are descendants of Adolph Coors, founder of the Adolph Coors Co. brewing company.
CoorsTek said in November it had received a $21/share takeover offer from the group, which currently owns about 27% of its stock. In the deal, the group will assume about $104 million of CoorsTek debt and gain $51 million in cash in CoorsTek’s treasury.
The deal allows CoorsTek to seek other takeover offers until Jan. 10. The company would owe Keystone a $9 million breakup fee if it terminates the deal, it said.
CoorsTek, which has been hurt by a protracted downturn in the semiconductor industry, said it expects to report 4Q revenue of $79 to $82 million, representing an 18 to 21% decline from its 3Q numbers.