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Stocks K / KEMET Corporation
|Subject: Arcotronics Acquisition Completed||Date: 10/12/2007 7:40 PM|
|Author: JTinvest||Number: 361 of 361|
KEMET Announces Closing of Transaction to Acquire Arcotronics
Friday October 12, 4:01 pm ET
GREENVILLE, S.C., Oct. 12 /PRNewswire-FirstCall/ -- KEMET Corporation (NYSE: KEM - News) today announced that it has completed its acquisition of Arcotronics Italia S.p.A., from Blue Skye (Lux) S.a r.l. The acquisition includes seven manufacturing facilities in Sasso Marconi, Monghidoro, and Vergato, Italy; Landsberg, Germany; Towchester, United Kingdom; Kyustendil, Bulgaria; and Anting-Shanghai, China.
"Arcotronics is a well-known brand in our industry and brings revenue in excess of $200 million to our company. The addition of the Arcotronics Group to our KEMET family represents a significant strategic milestone for us as we advance toward our goal of becoming The Capacitance Company," said KEMET CEO Per-Olof Loof. "The combination will create a stronger global business and will give KEMET the clear market leadership position for film and paper capacitors in Europe. It also expands our current product portfolio, broadens our technologies, and allows us to better serve new and existing customers. It will also allow us to achieve a more balanced portfolio, increasing our focus on OEM customers with a particular emphasis in the industrial segment."
"Now that the purchase is complete, we will move quickly to capitalize on the synergies inherent in the combination, while delivering world-class products and services to our new and existing customers as seamlessly as possible," added Mr. Loof. "We are gaining a great deal of fine talent and expertise as part of this acquisition, and we are delighted to welcome the Arcotronics employees to the KEMET team."
KEMET paid euro 17.5 million for 100% of the outstanding share capital of Arcotronics, assumed net financial debt of approximately euro 100 million, and certain other liabilities of the company totaling approximately euro 32 million...
This is the third acquisition since April 2006. Here is part of the press release from the April 2006 purchase:
Greenville, South Carolina (April 13, 2006) – KEMET Corporation (NYSE:KEM) today announced that it has completed its acquisition of EPCOS AG’s Tantalum Business Unit for euro 86.5 million (approximately $103.0 million). The acquisition includes the EPCOS AG tantalum capacitor manufacturing operation in Evora, Portugal, as well as certain research and development, marketing, and sales functions in various locations, primarily within Europe.
"Acquiring the EPCOS Tantalum Business Unit is strategic for KEMET as we further strengthen our global leadership position in the tantalum capacitor market," stated KEMET CEO Per Loof. “The acquisition will provide greater growth opportunities in our core business as we expand our presence and access to key markets and customers.
“From the time we announced the acquisition last December, people have been diligently planning for a successful integration to turn the unprofitable business unit under EPCOS into a profitable and accretive operation under KEMET. Now that the closing is complete, we will move quickly to capitalize on the synergies, while continuing to provide world-class products and services to our new and existing customers.
“We are also gaining a lot of fine talent and expertise as part of this acquisition. I believe our new employees are genuinely excited about joining our company, and we are delighted to welcome them to the KEMET team.”
In April 2007 KEM acquired 90%+ of the Evox Rifa Group. The net effect of all of these acquisitions will be to roughly double the sales of KEMET from $490 million in the fiscal year ending in March 2006 to roughly $1 billion going forward. There will continue to be restructuring charges as the operations are integrated together, and hopefully the net result will be that KEMET becomes a stronger more profitable company...
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