Rogers Corp. is selling its moldable composites division in a $40 million deal. The buyer, Perstorp Group, is focusing on growth opportunities in thermoset compounds.
The Sept. 20 deal involves Rogers' phenolics, epoxy, silicone and proprietary thermoset compounding operations based in Manchester, Conn. Perstorp's Vyncolit North America Inc. subsidiary is the official buyer, with no immediate changes in store for the work force of 140, Rogers spokeswoman Debra Granger said. The sale is scheduled to close within two months.
The bulk of the division's $35 million in annual sales goes to materials used in electronic motors and under-the-hood applications in the auto industry.
While Rogers, Conn.-based Rogers Corp. wants to cut back on the thermosets, Perstorp has focused on them, citing their expected annual growth rate of 15-20 percent, according to Anders Lundin, business area manager for Perstorp Engineering Materials. Perstorp opened the Vyncolit North America office in Bloomfield Hills, Mich., last year to target new business in the United States, while its Vyncolit NV of Ghent, Belgium, has won acclaim for phenolic parts replacing metal systems in European vehicles.
Perstorp, Sweden-based Perstorp already has a license to use Rogers' products in Europe. With the acquisition, Perstorp estimates its engineering materials sales could hit $130 million.
The purchase agreement calls for Perstorp to pay $21 million for business assets, with another estimated $19 million paid out over the next five years for intellectual property. Vyncolit NV President Henny van Dyk will move to Connecticut to oversee operations in both North America and Europe.