ROGERS, Conn.—Rogers Corp. said it has signed an agreement to acquire Arlon L.L.C., a global provider of high frequency circuit materials and engineered silicones.
Cost of the acquisition is $157 million, subject to closing and post-closing adjustments. Rogers will finance the transaction through a combination of cash and borrowings under an existing bank credit facility.
The deal is expected to close in the first half of 2015.
“This transaction is truly a unique strategic fit for both Rogers and Arlon,” said Bruce Hoechner, president and chief executive officer of Rogers. “We are energized by the opportunity to serve our customers with our complementary capabilities and technologies in circuit materials and engineered silicones and to enhance value for our shareholders. We look forward to closing this acquisition as another significant milestone in Rogers' growth as a premier global engineered materials solutions company.”
Rogers said that Arlon's circuit materials product lines positions it for additional growth in the expanding telecommunications infrastructure sector, as well as in the automotive, aerospace and defense sectors.
Arlon, currently owned by Handy & Harman Ltd., produces its circuit materials in Bear, Del.; Rancho Cucamonga, Calif.; and Suzhou, China.
Rogers said the proposed acquisition is consistent with its strategy as it adds complementary solutions to its Printed Circuit Materials and High Performance Foams business segments. Arlon currently offers products for sealing and insulation applications.
According to Rogers, Arlon will bring new capabilities in precision-calendered silicones, silicone-coated fabrics and specialty extruded silicone tapes. Used primarily for electrical insulation, these materials serve a wide range of applications across many market segments, including aviation, rail, power generation, semiconductor, foodservice, medical and general industrial. This product family is primarily manufactured in Delaware.
Revenue and operating income for Arlen were $100.4 million and $16.7 million, respectively, for the year that ended Sept. 30.
Rogers, headquartered in Connecticut, produces engineered materials including electronics solutions for energy-efficient motor drives, vehicle electrification and alternative energy; foams for sealing, vibration management and impact protection in mobile devices, transportation interiors, industrial equipment and performance apparel; and printed circuit materials for wireless infrastructure, automotive safety and radar systems. The firm operates manufacturing facilities in the U.S., China, Germany, Belgium, Hungary, and South Korea.