Knobias Clip Report (07-15-2008) ENTG
Submitted By Knobias ClipReport
ENTG: CEO Discusses Agreement to Acquire Poco Graphite for $158M
By Fain Hughes, fhughes@knobias.com
Entegris Inc. (ENTG) has signed a definitive agreement to acquire privately held Poco Graphite, Inc., in an all-cash transaction valued at $158 million.
Based in Decatur, Texas, Poco is a 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, aerospace and specialty industrial.
Gideon Argov, President and CEO of Entegris, explained in a conference call today, “We believe this acquisition provides some important benefits to Entegris. It is a strong profitable business with a proven track record and a well-established position in its market. It adds another consumable product line to our mix. It builds on our materials science capabilities, and it adds to our base in the semiconductor market, while adding a growth vector to diversify our business.”
“Poco’s annualized sales are approximately $65 million. The company has grown steadily oveer the past five years. It addresses a market that is more than 90% recurring. Poco’s semiconductor business makes up about 40% of its total revenues. About one third of Poco’s revenues are EDM. Poco is the most respected name in this market. The balance of Poco’s revenues address niche applications for specialty graphite and silicon carbide in industrial, solar energy, fuel cell, medical, and applications in the glass container market. We see significant opportunities to grow these niche applications.”
Mr. Argov added, “We expect the acquisition to be neutral in 2008 and accretive in 2009. A portion of the transaction id being funded by cash on hand with the majority financed by a revolving credit facility.”
He concluded, “A key component of our strategy is to leverage our materials science expertise and use it to diversify our business by addressing a broadening array of high-performance applications. We see Poco as an exciting step along that path that will allow us to build shareholder value.”
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