TAGS: Industrial Coatings
Materion has entered into a definitive agreement to acquire Optics Balzers, AG, an industry leader in thin film optical coatings. With this acquisition, Materion further accelerates its transformation into an advanced materials solutions provider and significantly expands its geographic reach, extending beyond its core of North America to include Europe and Asia.
Complementary technologies across the electromagnetic spectrum boost the capabilities of the combined thin film optical coatings portfolio and position Materion to capitalize on key megatrends in the areas of life science, consumer, and industrial.
Strategic Combination Brings Value to Business and Customers
Optics Balzers’ technical capabilities, product portfolio, end market, and geographic mix, combined with their talented leadership team will accelerate Materion’s global growth. Dr. Detlev Häusler, CEO of Optics Balzers, added, “
We are extremely excited to partner with Materion to create this strategic combination to fully leverage the growth potential across all of the markets we serve. Our combined global reach, technical capabilities, and in-house talent should create tremendous value for our customers and expand opportunities for our employees.”
The transaction is valued at approximately $160 million and represents an enterprise multiple of 12x on a TTM basis and 8x pro forma for synergies. The acquisition is expected to be accretive to overall growth rate, EBITDA margin, and earnings in the first year, excluding one-time acquisition-related costs.
Transaction Highlights
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Acquiring optical thin film coating solutions provider with a highly complementary geographic, product, and end market mix
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Transaction values Optics Balzers at 12x trailing twelve-month (TTM) EBITDA, or 8x pro forma for synergies
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Accretive to growth, EBITDA margin, and 2021 earnings
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Closing expected in third quarter 2020
Source: Materion