The acquisition will provide Rogers with a dynamic advanced silicones platform, Gouvei said. It further strengthens the company's ability to serve global customers.
"(It) combines highly complementary technologies with synergistic opportunities for innovation in product development," Gouvei said. "(We) have strong positions with EV manufacturers in Europe, and Silicone Engineering's European presence and technology will help us further accelerate this growth opportunity."
The Silicone Engineering team, products and business model are closely aligned with Rogers, so the expectation from this deal is one of seamless integration.
"We look forward to maximizing the strategic commercial opportunities this combination affords," Bruce Hoechner, Rogers' president and CEO, said in a statement.
The strategic move is also expected to add to Rogers' revenue and profitability beginning as early as the fourth quarter of 2021. Silicone Engineering reported roughly $35 million in revenue in September, and its profitability is comparable to Rogers' elastomeric materials solutions business. Rogers' revenue has increased 19 percent in the first half of 2021 compared to the first six months of 2020. The first half revenues in 2020 had declined by 11 percent compared to the previous year, largely because of the effects of the COVID-19 pandemic, Gouvei said.
In the future, Gouvei expects that Rogers will experience growth in a number of markets, led by electric vehicles. That market is forecast to achieve 25-30 percent annual growth over the next five years, he added. Silicones will continue to be a key technology for Rogers in the future with further product line expansions expected, although further details on what that will entail aren't readily available.
Rogers has acquired several companies over the years.
Two of the company's larger acquisitions have been Arlon, a provider of high frequency circuit materials and engineered silicones in 2015; and DeWAL Industries, a manufacturer of high-performance polymer films and pressure sensitive tapes, in 2016.
Rogers Corp. concentrates its efforts on manufacturing advanced electronic and elastomeric materials used in applications for EV/HEV, automotive safety and radar systems, mobile devices, renewable energy, wireless infrastructure, energy-efficient motor drives, industrial equipment and more.
Rogers itself is in the process of being acquired. DuPont this month reached a deal to purchase it for $5.2 billion. The sale is expected to be concluded by the end of the second quarter of 2022.
