AlliedSignal Re-positions Electronic Materials Business
9 July 1999
AlliedSignal Re-positions Electronic Materials Business
MORRIS TOWNSHIP, N.J.--July 9, 1999--Acquires Johnson Matthey Electronics
Combination Expected To Be Accretive To Earnings During The Year
2000
In moves designed to re-position and strengthen its Electronic Materials business, AlliedSignal Inc. [NYSE: ALD] announced today that it is selling its Laminate Systems business to RUTGERS AG and is purchasing Johnson Matthey Electronics.
Johnson Matthey Electronics, a division of Johnson Matthey Plc., had sales of US$671 million in the year ended March 31, 1999, and is a leading supplier of materials to the semiconductor and microelectronics industries.
AlliedSignal purchased Johnson Matthey Electronics for US$655 million and sold Laminate Systems for approximately US$425 million. AlliedSignal expects the combination of the two transactions to be accretive to earnings during the year 2000.
"The actions we are taking today in Electronic Materials are the latest steps in our continuing strategy to improve AlliedSignal's global business portfolio by divesting non-strategic businesses and making higher-value complementary acquisitions," said Lawrence A. Bossidy, AlliedSignal Chairman and Chief Executive Officer. "Divesting Laminate Systems removes us from the lower-margin laminate industry and acquiring Johnson Matthey Electronics supports our business strategy to enter additional higher-margin specialty segments."
Acquisition Positions Business For Growth
Bossidy added that the combination of AlliedSignal and Johnson Matthey Electronics will offer customers the full spectrum of interconnect solutions, from wafer fabrication through semiconductor packages. "The acquisition combines our semiconductor chemistry with Johnson Matthey's metallurgical expertise, making us a preeminent supplier in the high-value segments of the semiconductor industry," Bossidy said. "These solutions, which include planarization and thin film deposition, enable our semiconductor customers to continue to achieve ever-smaller geometries and increased speed."
Geoffrey Wild, President of AlliedSignal Electronic Materials, said that Johnson Matthey Electronics gives AlliedSignal entree to the growing High Density Interconnect (HDI) industry, which includes the new generation of smaller cellular phones, pagers and other telecommunications devices. Wild added that the Johnson Matthey acquisition makes "Electronic Materials nearly a $1-billion provider of high-technology solutions to a fast-growing industry."
AlliedSignal's Electronic Materials, headquartered in Los Gatos, California, serves the electronics industry with materials and services used to produce semiconductor devices, advanced packaging for silicon chips and amorphous alloy products for power management. It operates facilities in the U.S., China, Korea, Japan, India and Singapore.
AlliedSignal Inc. is an advanced technology and manufacturing company serving customers worldwide with aerospace products and services, automotive products, chemicals, fibers and advanced materials. It is one of the 30 stocks that make up the Dow Jones Industrial Average and is also a component of the Standard & Poor's 500 Index. The company employs 70,400 people in some 40 countries. Additional information on the company is available on the World Wide Web at http://www.alliedsignal.com
RUTGERS AG, Essen, Germany, is a $2.7 billion (DM 5 billion) industrial leader serving the plastics and chemicals sectors. The company employs approximately 14,000 people in 12 countries worldwide. Additional information on the company is available on the World Wide Web at http://www.ruetgers.de
Headquartered in Eden Prairie, Minnesota, Johnson Matthey Electronics provides advanced circuits and product assembly services to the electronics industry, as well as a comprehensive range of services and products used in wafer fabrication and semiconductor packaging. The business employs 5,600 people and operates 22 facilities worldwide, including several sites in Europe and Asia.
Johnson Matthey Plc., London, England, is a $5.3 billion advanced materials company. It is a leading supplier of precious metals, catalysts and chemicals to a wide variety of industries. The company also manufactures bulk pharmaceuticals including the world's top selling platinum anti-cancer drugs.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts.