Negotiations regarding the sale of the target businesses of Heraeus, a technology group in Hanau, to the Materion Corporation (NYSE: MTRN), headquartered in Mayfield Heights, Ohio, have been concluded. The two sides signed a contract for the sale on Friday, December 2. The Heraeus target businesses are located in Hanau, the United States, Taiwan and China. In Hanau, some 110 employees will transfer to a new Materion unit in Germany. The transaction, scheduled for completion at the end of February 2017, is still subject to approval by the antitrust authorities. Negotiations continue regarding the Heraeus site in Singapore, where surface coatings for hard disks are manufactured. This allows initiating the process with the antitrust authorities and thus accelerating the whole transaction process.
Sale offers new prospects and a better focus on Heraeus’s growth markets
“We are pleased that we were able to successfully conclude constructive negotiations with Materion,” says Jan Rinnert, Chairman of the Board of Management of Heraeus Holding GmbH. “We can now focus more consistently on the businesses where we have a strong competitive position along with very good opportunities for growth. At the same time, the merger offers new prospects for employees in the departments taken over by Materion.”
Materion plans to build a new facility in the Rhine-Main area as its European headquarters. Options for construction of a new factory currently include sites in Alzenau and Hanau-Wolfgang. A decision is expected in the weeks ahead. The newly built production facilities is scheduled to be available for the beginning of 2018.
Targets are used for surface coatings in industry and in chip manufacturing. Heraeus produces targets mainly for specialized applications, such as large-area glass coatings, but is also active in the hard drive, electronics and display component markets. However, Heraeus did not have critical mass in these markets.