Advanced materials supplier Materion Corp. of Mayfield Heights, Ohio, announced it has signed a definitive agreement to buy Optics Balzers AG, a maker of thin film optical coatings, in a deal valued at $160 million.
The deal is expected to close in the third quarter of 2020, subject to regulatory clearance, Materion said in a news release on June 8.
Materion said in the release that the acquisition "accelerates its transformation into a global advanced materials solutions provider and significantly expands its geographic reach, extending beyond its core of North America to include Europe and Asia."
Complementary technologies produced by Optics Balzers "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," according to the release.
Optics Balzers, based in Liechtenstein, had about $67 million in sales in the trailing 12 months, Materion said.
The acquisition "is expected to be accretive to our overall growth rate ... and earnings in the first year, excluding one-time acquisition-related costs," Materion said in the release. The company intends to fund the all-cash transaction with a combination of cash on hand and borrowings under its revolving credit facility.
Optics Balzers, founded in 1946, has research and manufacturing operations in Liechtenstein and Germany. It recently launched a manufacturing facility in Malaysia that has helped the company grow in Asia.
The entire Optics Balzers management team, global workforce and facilities will be merged with Materion's Precision Coatings business segment.
Jugal Vijayvargiya, president and CEO of Materion, said in a statement that the combination "creates a global industry leader in optical thin film coating solutions."