CeramTec announces acquisition of UK electro-ceramics business from Morgan Advanced Materials
CeramTec announces today that it has agreed the acquisition of the UK electro-ceramics business (“UK Electro-Ceramics”), comprising two manufacturing sites at Ruabon and Southampton, from Morgan Advanced Materials plc. The transaction will be structured as a sale of the business, assets and goodwill for an enterprise value of £47m, which will be funded from cash on the balance sheet and payable at completion, which is expected in April 2017.
In the year ended 31 December 2016, the UK Electro-Ceramics business generated revenues of £22.7m and employed 251 persons. The business produces a range of piezo and dielectric ceramic products used in a wide range of industrial, electronics, medical and defense applications.
For CeramTec, the acquisition will add complimentary capabilities and further build scale in these highly specialised markets. Tony Beswick, current Managing Director of Morgan Technical Ceramics, will continue to run the business under CeramTec’s ownership.
Henri Steinmetz, Chief Executive Officer of CeramTec said: “We are excited by the prospect of bringing together the significant expertise and knowledge in piezo and dielectric ceramics which complement each other perfectly. This transaction opens the door to many new opportunities and possibilities for CeramTec: new markets, new application areas, and new developments. Together, we are stronger and we will be able to offer our customers an even broader spectrum of products and applications. The significant demand for sensors and measurement technology as well as control and monitoring systems provides the best opportunities for a successful future.”
Pete Raby, Chief Executive Officer of Morgan, said: “I am pleased to announce the sale of UK Electro-Ceramics. This divestment supports our aim of simplifying Morgan to focus on technology businesses of scale, allowing us to better service global markets and to drive the most value from our core activities. UK Electro-Ceramics is a specialist business with excellent customer relationships. This transaction will build its scale and combine its expertise with that of CeramTec, creating a stronger and more resilient platform for the future.”