OM Group to buy battery maker EaglePicher Technologies for $172 million
11:55 am, December 28, 2009
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Specialty chemicals company OM Group Inc. (NYSE: OMG) of Cleveland said it has signed a definitive agreement to purchase buy EaglePicher Technologies LLC, a maker of batteries for the defense, aerospace and medical industries, for $171.9 million.
The deal is expected to close by the middle of the first quarter of 2010, according to an OM Group news release. It will be funded by OM Group's existing cash and credit facility.
Joplin, Mo.-based EaglePicher Technologies is a wholly owned subsidiary of EaglePicher Corp., which is based in Dearborn, Mich.
OM Group said in a news release that in addition to its traditional battery manufacturing, EaglePicher Technologies is “actively pursuing opportunities that would leverage its advanced power storage technologies to serve the rapidly growing alternative energy market.”
In fiscal year 2009, EaglePicher Technologies recorded revenues of approximately $125 million, of which about 60% came from its defense business.
"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 CEO, in a statement.
He added, “We believe EaglePicher will provide us a strong and profitable base from which we can accelerate our growth in battery materials."
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