Morgan Crucible, parent company to Morgan Technical Ceramics, has agreed to acquire two technical ceramics businesses, Certech and Carpenter Advanced Ceramics, from Carpenter Technology Corporation. These businesses will be acquired on a cash and debt free basis for a cash consideration of $147 million.
Certech is the number one global independent manufacturer of a broad range of complex, injection-molded, consumable ceramic components, which are used during the investment casting of turbine blades and vanes for aerospace engines, industrial gas turbines and some high-end industrial castings. Certech also manufactures a range of other porous ceramics and various foundry supplies, and has seven plants in the US, UK and Mexico, totaling approximately 750 employees.
Carpenter Advanced Ceramics is a manufacturer of engineered ceramics products very similar to those of Morgan Crucible's existing Technical Ceramics operations. It sells high-purity alumina and zirconia structural ceramic components for a variety of applications and industries, and is a world leader in zirconia ceramics. It operates two plants, one in the US and one in Australia, and has approximately 150 employees.
Both acquisitions are strongly aligned with Morgan Crucible's existing core ceramic technology and with its strategic priorities, which focus on higher growth, higher margin and less economically-cyclical markets. Following completion, Certech and Carpenter Advanced Ceramics will become part of Morgan Crucible's Technical Ceramics division.
Mark Robertshaw, Chief Executive Officer of Morgan Crucible, said: "These acquisitions enhance our high value-added offering to customers and reinforce the standing of our Technical Ceramics division as a global market leader in its chosen fields. The strength of our balance sheet has afforded us the flexibility to seek such value accretive acquisitions. Our Group overall order book remains robust and the outlook for top line and margin growth is positive."
Andrew Hosty, Chief Executive Officer of the Technical Ceramics division said: "This is an exciting addition to our Technical Ceramics business. It supports our goal of delivering mid-teen margins and increases our presence in the growing aerospace sector."