Rogers Corporation has announced that they have signed a definitive agreement to acquire Arlon, LLC, currently owned by Handy & Harman Ltd. (NASDAQ: HNH), for $157 million, subject to closing and post-closing adjustments. The proposed acquisition of Arlon is consistent with Rogers' strategy as it adds complementary solutions to its Printed Circuit Materials and High Performance Foams business segments and expands Rogers' capabilities to serve a broader range of markets and application areas.
Arlon's circuit materials product family positions Rogers for additional growth in the rapidly expanding telecommunications infrastructure sector, as well as in the automotive, aerospace and defense sectors. Arlon produces its circuit materials in Bear, Delaware; Rancho Cucamonga, California; and Suzhou, China.
The engineered silicones product family of Arlon will further diversify the Company's solutions and market opportunities in sealing and insulation applications. Arlon will bring new capabilities in precision-calendered silicones, silicone-coated fabrics and specialty extruded silicone tapes. Used primarily for electrical insulation, these materials serve a wide range of high reliability applications across many market segments, including aviation, rail, power generation, semiconductor, foodservice, medical and general industrial. This product family is primarily manufactured in Bear, Delaware.
Revenue and operating income for the Arlon segment of Handy & Harman Ltd. were $100.4 million and $16.7 million, respectively, for the trailing twelve months ended September 30, 2014 (compiled based on amounts reported by Handy & Harman Ltd. in Forms 10-K and 10-Q filed with the Securities and Exchange Commission).
The transaction, which is subject to regulatory clearances, is expected to close in the first half of 2015. Rogers intends to finance the transaction through a combination of cash and borrowings under an existing bank credit facility.
Bruce Hoechner, President and Chief Executive Officer of Rogers said, "This transaction is truly a unique strategic fit for both Rogers and Arlon. We are energized by the opportunity to serve our customers with our complementary capabilities and technologies in circuit materials and engineered silicones and to enhance value for our shareholders. We look forward to closing this acquisition as another significant milestone in Rogers' growth as a premier global engineered materials solutions company."
