(January 4, 2011) — Rogers Corporation (NYSE: ROG) has closed on the transaction to acquire Curamik Electronics GmbH, a manufacturer of power electronic substrate products headquartered in Eschenbach, Germany.
Rogers signed a definitive agreement on December 31, 2010 to acquire 100% of the stock of Curamik Electronics GmbH for €116 million ([USD154.3 million] subject to post closing audit adjustments). The acquisition will be financed through a combination of borrowings under existing bank credit facilities and cash.
Curamik, founded in 1983, is the worldwide leader for development and production of direct copper bonded (DCB) ceramic substrate products used in the design of intelligent power management devices, such as insulated gate bipolar transistor (IGBT) modules. These devices enable a wide range of products including highly efficient industrial motor drives, wind and solar energy converters and hybrid electric vehicle drive systems. Most of Curamik’s products are manufactured using state-of-the-art automated processes in its facility located in Eschenbach, Germany.
Rogers’ current strategy includes targeting three key strategic markets to drive its future success: sustainable energy, the internet, and mass transit. This acquisition is part of the Company’s plan to add new growth platforms in these targeted strategic markets as over 90% of Curamik’s sales serve these markets with the majority in the high growth sustainable energy market, primarily in Europe. Rogers expects to be able to significantly increase Curamik’s presence in both North America and Asia through Rogers’ existing infrastructure.
Robert D. Wachob, Rogers’ president and CEO commented; “Curamik fits Rogers’ strategy very well as they are both the market and technology leader in power electronic substrate products. I currently expect Curamik to add $115 to $125 million in sales and $0.20 to $0.30 in net earnings per diluted share to our results in 2011 and to provide significant opportunities for future growth as the markets Curamik participates in are projected to grow at approximately a 15% rate over the next several years”.
Rogers Corporation (NYSE:ROG) is a global technology leader in specialty materials and components that enable high performance and reliability of consumer electronics, power electronics, mass transit, sustainable energy, and telecommunications infrastructure. For more information, visit www.rogerscorp.com.
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