Costa Mesa-based Ceradyne Inc., a maker of bullet-proof vests and other
military armor, is paying up to $125
million for North Billerica, Mass.-based
SemEquip Inc.
SemEquip makes equipment used in the production of semiconductors. The deal calls for Ceradyne to pay $25 million in cash now and up to $100 million during the next 15 years if SemEquip reaches sales targets.
Ceradyne said it could see a charge
of $9 million to $11 million in the
quarter the acquisition is completed. The deal is expected to close in the third
quarter.
The move is part of Ceradyne’s effort to build up businesses other than its
dominant military armor.
Military sales made up 63% of Ceradyne’s $188 million in first-quarter sales, down from 77% a year earlier.
The acquisition expands on Ceradyne’s 2007 buy of Oklahoma’s EaglePicher Boron LLC for $69 million. EaglePicher Boron makes chemicals used in the production of chips.
SemEquip started in 2000 and raised $26 million in venture funding in 2005.
,Michael Lyster
