Eaton Authorizes Spin-Off of Semiconductor Equipment Business
25 October 2000
Eaton Authorizes Spin-Off of Semiconductor Equipment Business
CLEVELAND--Oct. 25, 2000--Board Sets Record and Distribution Dates for Axcelis Stock Dividend;
Declares Quarterly Eaton Cash Dividend
Eaton Corporation and Axcelis Technologies, Inc.today announced that the Eaton board of directors has declared a dividend distribution of Axcelis shares. The dividend will be distributed on December 29, 2000 to Eaton shareholders of record as of 5 p.m. Eastern Standard Time on December 6, 2000. Eaton currently holds 79,994,900 shares, or approximately 82 percent, of the outstanding common stock in Axcelis.
The Axcelis shares will be distributed to Eaton shareholders of record in the amount of approximately 1.15 shares of Axcelis for each Eaton share. The final ratio will be based on the actual number of Eaton shares outstanding on the record date. On October 20, 2000, Eaton had 69,856,828 million shares outstanding.
Eaton shareholders will receive whole shares of Axcelis, and cash payments for fractional shares. On October 13, 2000, Eaton received a ruling from the Internal Revenue Service that this stock distribution to shareholders qualifies as tax-free for U.S. federal income tax purposes. Cash received in lieu of fractional shares will be taxable.
In April, 2000, Eaton announced its intent to reorganize its semiconductor equipment operations into an independent company and conduct an IPO for the business. Eaton said at that time it was taking the action in order to maximize the value of the business for Eaton shareholders, and because Eaton believed its semiconductor business would be better able to compete for talent in the employment marketplace by compensating employees with its own stock.
The new company, Axcelis Technologies, Inc., completed the IPO for approximately 18 percent of its shares in July. Earlier this month, Eaton said it intended to deliver the value of its 82 percent ownership of Axcelis in the form of a spin-off of its Axcelis shares to Eaton shareholders.
Separately, the Eaton board of directors today declared a regular cash quarterly dividend of $.44 per common share, payable on November 24, 2000 to shareholders of record on November 6, 2000. Eaton has paid dividends on common shares annually since 1923.
With 1999 sales of $8.4 billion, Eaton is a global diversified industrial manufacturer of highly engineered products that serve industrial, vehicle, construction, commercial, aerospace and semiconductor markets. Principal products include hydraulic products and fluid connectors, electrical power distribution and control equipment, truck drivetrain systems, engine components, ion implanters and a wide variety of controls. The company has 64,000 employees and 200 manufacturing sites in 24 countries. The Internet address for Eaton is: http://www.eaton.com/
Axcelis is headquartered in Beverly, Mass., and is a leading producer of ion implantation equipment used in the fabrication of semiconductors. Axcelis also produces dry strip, photostabilization and rapid thermal processing equipment used in semiconductor manufacturing, and provides extensive aftermarket service and support, including spare parts, equipment upgrades, maintenance services and customer training.