Thursday, II-VI Inc. (IIVI) said it has agreed to purchase Pacific Rare Specialty Metals & Chemicals Inc. or PRSMC in exchange for cash. The transaction is expected to close in the first fiscal quarter ending September 30, 2007. Financial terms were not disclosed.
The company has executed a definitive stock purchase agreement, under which a wholly owned subsidiary of II-VI will acquire substantially all of the equity interests of PRSMC.
After the acquisition, PRSMC will become an operating unit of the company and will report to Jim Martinelli, Vice-President of Government and Military Business of II-VI.
The acquisition is expected to be immediately accretive to revenues and earnings. II-VI said it would revise its guidance for the fiscal year ending June 30, 2008.
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.
Saxonburg, Pennsylvania-based II-VI engages in the development, manufacture, and marketing of materials and derivative products for precision use in industrial, medical, military, security, and aerospace applications.
IIVI closed Thursday's regular trading session at $27.86, down 44 cents or 1.55%. However, in the after-hours, the shares gained 14 cents.
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