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OM Group to Acquire Advanced Battery Manufacturer EaglePicher Technologies for $171.9M

OM Group, Inc., has signed a definitive agreement to purchase EaglePicher Technologies LLC, a wholly owned subsidiary of EaglePicher Corporation, for $171.9 million.

Based in Joplin, MO, EaglePicher is a designer and manufacturer of batteries, battery management systems and energetic devices for the defense, aerospace and medical industries. EaglePicher is also actively pursuing opportunities that would leverage its advanced power storage technologies to serve the rapidly growing alternative energy market.

EaglePicher Technologies offers a wide range of battery technology including thermal, nickel hydrogen, lithium carbonmono-fluoride, lithium thionyl chloride, lithium manganese dioxide, lithium sulfur dioxide, lithium ion, reserve lithium oxyhalide, custom battery assemblies and silver zinc batteries.

In October, Eagle Picher, in partnership with the Pacific Northwest National Laboratory, was awarded an ARPA-E grant of $7.2 million to develop a new generation of high energy, low cost planar liquid sodium beta batteries for grid scale electrical power storage applications. (Earlier post.)

In fiscal year 2009, EaglePicher recorded revenues of approximately $125 million, of which approximately 60% came from its defense business, approximately 31% from its aerospace business and the balance from its medical and other businesses.

The proposed acquisition of EaglePicher is a logical extension of our portable power platform and is another excellent example of the type of acquisition we seek to transform our business model. Similar to the enhanced market position we've created for OMG in other key segments through our transformation strategy, we believe EaglePicher will provide us a strong and profitable base from which we can accelerate our growth in battery materials.

As we went through our deliberate evaluation process, there were several critical factors that clearly established EaglePicher as a priority, including its recognized leadership position in profitable, established end markets; its strong and enduring customer relationships; and its broad R&D and technical expertise in sophisticated battery systems and a wide range of battery chemistries that will allow it to pursue emerging, high-growth markets.

—Joseph M. Scaminace, OM Group chairman and CEO

The proposed transaction, which is subject to customary closing conditions, is expected to close by the middle of the first quarter of 2010. The transaction will be funded by OMG’s existing cash and credit facility.

OM Group, Inc. is a diversified global developer, producer and marketer of value-added specialty chemicals and advanced materials that are essential to complex chemical and industrial processes.

Comments

Henry Gibson

I missed the earlier liquid sodium beta announcement. It is strange that it is considered obsolete by most people who think that lithium is the only answer. The sodium sulphur large batteries are already being used in the US and elsewhere. But in the US natural gas powered engines are probably cheaper and more reliable. ..HG..

Henry Gibson

I ignored the previous sodium announcement, but went back and said this.

Liquid sodium batteries already in production already are suitable for electric cars, and already are in use for grid power in the US. The not invented here syndrome is in full force. Beta research could have used the money to futher develop what they have been working on for 20 years. Planar is interesting even so but what is necessary is cost reduction. Cerametec should be involved along with GE and MES-DEA. ..HG..

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