T Advanced Technologies
GTAT, today announced that it has acquired substantially all of the
business of Thermal Technology LLC for purchase consideration consisting of
approximately 3.4 million shares of GTAT common stock and an earn out. Located
in Santa Rosa, CA, Thermal Technology develops and sells a wide range of high
temperature thermal and vacuum products used in the fabrication of advanced
materials that are deployed across multiple industries including smartphones
and touch screens, LED, medical devices, oil and gas and automotive to name a
few. Thermal Technology has delivered over 3,000 products to customers in over
40 countries since it was founded 60 years ago.
GT has acquired several key products and technologies that will allow GT to
address new markets with a range of production equipment options that can be
optimized around customers' specific needs. This includes annealing technology
that the company believes will be important in the manufacturing of sapphire
cover screens; crystal growth technology based on the Kyropoulous (KY) growth
method and edge defined film growth (EFG) technology for large surface area
sapphire. The company has also acquired Spark Plasma Sintering (SPS)
technology, which allows dense ceramics to be obtained under uniform heating
at relatively low temperatures and in short processing times. The SPS
technology is expected to have a wide range of applications including with
medical applications, sputtering targets, space applications and
thermoelectric convertors for hybrid electric cars.
"The acquisition of the Thermal Technology business adds a number of
innovative and important products and technologies to our rapidly diversifying
portfolio that will, we believe, allow us to accelerate our entrance into new
markets," said Tom Gutierrez, GT's president and CEO. "The acquisition expands
our served markets and complements several of our current product lines. In
areas such as sapphire crystal growth, we can now offer customers a wider
range of product options best suited to their specific production
environments. This will enable us to compete for incremental business in areas
where we would have previously been unable to offer a product."
"This is an exciting moment for the company, our employees and our customers,"
said Matt Mede, president and CEO of Thermal Technology. "The acquisition will
open new opportunities for growth for our products and technology as we
integrate them into GT's business operations. Leveraging GT's leadership in
engineering and product development and their strengths in low-cost global
supply chain management will accelerate the time-to-market of our technology
to drive market adoption in several promising markets as we go forward.
Customers will also benefit through GT's global service and support
capabilities."
GT does not expect the acquisition to materially impact its CY13 revenue or
earnings guidance range. The anticipated revenue contribution from the Thermal
Technology business in the balance of FY13 is approximately $9 to $14 million.
GT expects minimal impact on earnings per share as expenses and the increase
in share count will limit the contribution during the initial year of
integration.
Friday, May 17, 2013, at 8:00am ET the company will host a conference call
with Tom Gutierrez, president and chief executive officer, and Richard Gaynor,
chief financial officer, to answer questions about the acquisition. The call
will be webcast live and can be accessed by logging on to the "Investors"
section of GT Advanced Technologies' website, http://investor.gtat.com/ or by
dialing (631) 291-4543. No password is required. A replay of the call will be
available. To access the replay, please go to http://investor.gtat.com/ and
select the webcast replay link on the 'Events and Presentations' page.
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