II-VI announced it has acquired the outstanding shares of M Cubed Technologies to expand its credit facility. The purchase was initially considered for $71.4 million. The price is subject to change due to customary closing adjustments that could increase the purchase price by up to $2.5 million, according to II-VI.
M Cubed made $52 million in revenue during the 2011-2012 fiscal year that ended on June 30. II-VI, a manufacturer of laser-optic materials, optics, components, electro-optical products and radiation detection devices, predicts M Cubed to generate $35 million in revenues for the company during the first eight months of the 2012-2013 fiscal year ending on June 30, 2013.
"The acquisition of M Cubed will expand our engineered material business portfolio in the reaction bonded silicon carbide ceramics and metal matrix composite engineered material markets, which will enable us to provide value-added ceramic components through OEM channels into the semiconductor, display, industrial and defense sectors, said Francis Kramer, president and chief executive officer of II-VI. "We also anticipate that the close cooperation between our combined companies can accelerate the development of new materials for optical, wear, refractory and thermal management applications in the industrial sector."
II-VI expects the acquisition to increase the company's earnings per share between $0.01 and $0.03.
"We believe that this acquisition represents an outstanding strategic fit for M Cubed, and II-VI that will result in significant growth opportunities for the business and our dedicated team of employees," said Randall Price, Sr., chairman and chief executive officer of M Cubed. "We also believe that the combination will provide additional financial stability allowing M Cubed to expand upon the exceptional level of support for which our customers have grown to rely upon M Cubed."
