II-VI to buy Pacific Rare Specialty Metals & Chemicals
PITTSBURGH, PA-II-VI Inc. has executed a definitive stock purchase agreement whereby a wholly owned subsidiary of II-VI will acquire substantially all of the equity interests of Pacific Rare Specialty Metals & Chemicals, Inc.
PITTSBURGH, PA-II-VI Inc. has executed a definitive stock purchase agreement whereby a wholly owned subsidiary of II-VI will acquire substantially all of the equity interests of Pacific Rare Specialty Metals & Chemicals, Inc. (PRSMC; The Philippines) in exchange for cash. The transaction is expected to close in II-VI’s first fiscal quarter ending September 30, 2007. Financial terms of the transaction were not disclosed.
Founded in 2001 and with origins from 1983, PRSMC is a producer and refiner of selenium and tellurium metals and chemicals as well as other rare metals and components for electronic, industrial and other applications.
As a result of this acquisition, II-VI will expand its product offering and secure its supply chain for selenium and tellurium. Selenium is a critical raw material for the production of zinc selenide, the most commonly used substrate for CO2 laser optics manufactured and sold through II-VI’s Infrared Optics business segment. Tellurium is a critical raw material for the production of bismuth telluride for thermoelectric coolers manufactured and sold by Marlow Industries, Inc., part of II-VI’s Compound Semiconductor Group business segment.
“For the past few years the volatility of the cost and the available supply of selenium for our Infrared Optics business has been a concern,” said Francis Kramer, president of II-VI. “Although this acquisition does not eliminate the selenium price volatility, it does improve the certainty of supply. The PRSMC tellurium production will also benefit our thermoelectric cooler cost structure and supply chain.”