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|OM Group to Acquire Advanced Battery Manufacturer EaglePicher Technologies, LLC for $171.9 Million|
Based in Joplin, MO, EaglePicher is a leader in designing and manufacturing batteries, battery management systems and energetic devices for the defense, aerospace and medical industries. For more than 50 years, the company has provided a broad product line of technically differentiated, high-performance products and solutions to industry leading corporations. EaglePicher is also actively pursuing opportunities that would leverage its advanced power storage technologies to serve the rapidly growing alternative energy market.
In fiscal year 2009, EaglePicher recorded revenues of approximately $125 million, of which approximately 60 percent came from its defense business, approximately 31 percent from its aerospace business and the balance from its medical and other businesses.
"The proposed acquisition of EaglePicher is a logical extension of our portable power platform and is another excellent example of the type of acquisition we seek to transform our business model," said Joseph M. Scaminace, OM Group's chairman and chief executive officer. "Similar to the enhanced market position we've created for OMG in other key segments through our transformation strategy, we believe EaglePicher will provide us a strong and profitable base from which we can accelerate our growth in battery materials."
According to Scaminace, "As we went through our deliberate evaluation process, there were several critical factors that clearly established EaglePicher as a priority, including its recognized leadership position in profitable, established end markets; its strong and enduring customer relationships; and its broad R&D and technical expertise in sophisticated battery systems and a wide range of battery chemistries that will allow it to pursue emerging, high-growth markets.
"With EaglePicher, OM Group would not only balance its portfolio of high-quality, value-added materials with world-class, market-facing technologies, but would create an effective channel through which we could bring our various materials closer to the end user. As we have stated many times in the past when discussing our transformational strategy, migrating our materials forward along the value chain is a critical component of long-range growth imperative. With the help of Randy Moore, EaglePicher's president, and his experienced and talented team, we believe we have taken a significant step forward towards this goal."
The proposed transaction, which is subject to customary closing conditions, is expected to close by the middle of the first quarter of 2010. The transaction will be funded by OMG's existing cash and credit facility.
EaglePicher Technologies, LLC is the leading producer of batteries and energetic devices for the defense, space and commercial industries, and provides the most experience and broadest capability in battery electrochemistry of any battery supplier in the United States. EaglePicher Technologies offers a wide range of battery technology including thermal, nickel hydrogen, lithium carbonmono-fluoride, lithium thionyl chloride, lithium manganese dioxide, lithium sulfur dioxide, lithium ion, reserve lithium oxyhalide, custom battery assemblies and silver zinc batteries. It also provides other energy products and pyrotechnic devices for the defense industry, as well as advanced battery chargers and other power solutions for business, industrial and recreational applications.
About OM Group, Inc.
OM Group, Inc. is a diversified global developer, producer and marketer of value-added specialty chemicals and advanced materials that are essential to complex chemical and industrial processes. Key technology-based end-use applications include affordable energy, portable power, clean air, clean water, and proprietary products and services for the microelectronics industry. Headquartered in Cleveland, Ohio, OM Group operates manufacturing facilities in the Americas, Europe, Asia and Africa. For more information, visit the company's Web site at http://www.omgi.com/.
The foregoing discussion may include forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon specific assumptions and are subject to uncertainties and factors relating to the company's operations and business environment, all of which are difficult to predict and many of which are beyond the control of the company. These uncertainties and factors could cause actual results of the company to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. Such uncertainties and factors include: the potential impact that the current global economic and financial market crisis may have on our business and operations, including future goodwill impairments; the direction and pace of our strategic transformation, including identification of and the ability to finance potential acquisitions; the successful acquisition of EaglePicher Technologies, LLC and integration of those operations; the operation of our critical business facilities without interruption; the speed and sustainability of price changes in cobalt; the potential for lower of cost or market write-downs of the carrying value of inventory necessitated by decreases in the market price of cobalt or the selling prices of the Company's finished products; the availability of competitively priced supplies of raw materials, particularly cobalt; the demand for metal-based specialty chemicals and products in the Company's markets; the impact of environmental regulations on our operating facilities and the impact of new or changes to current environmental, health and safety laws on our products and their use by our customers; the effect of fluctuations in currency exchange rates on the Company's international operations; the effect of non-currency risks of investing and conducting operations in foreign countries, including political, social, economic and regulatory factors; the effect of changes in domestic or international tax laws; and the general level of global economic activity and demand for the Company's products.
SOURCE OM Group, Inc.