Industrial ceramics manufacturer Coors-Tek expanded its global reach Monday with the acquisition of Tokyo-based Covalent Materials Corp.
Terms of the purchase were not disclosed. said the combined companies will generate annual revenue of $1.25 billion.
Covalent makes materials and parts for semiconductors, including ceramics, quartz glass and silicon carbide products. The firm also manufactures silica glass crucibles for the optical glass industry and biomedical products including synthetic bone material that helps tissues regenerate.
The company formerly operated as Toshiba Ceramics. The name was changed to Covalent when it was purchased in 2006 by Washington-based Carlyle Group LP and Japanese private-equity firm Unison Capital Inc.
When Covalent’s owners , they were seeking 50 billion yen, or $414 million, according to Bloomberg News.
CoorsTek, spun off in 1992 from parent company Adolph Coors Co., makes high-tech ceramics for applications including computer chips, oil and gas equipment, solar panels and body armor. The firm operates 45 manufacturing plants on four continents, with total employment of about 4,000.
The acquisition of Covalent Materials will boost CoorsTek’s worldwide employment from 4,500 to about 6,000 and the number of locations from 45 to 50.
CoorsTek already operates a sales office in Tokyo and manufacturing facilities in South Korea. The Covalent deal is expected to expand the CoorsTek market in Japan and throughout Asia.
Jonathan Coors, CEO of CoorsTek’s semiconductor and medical group, noted that CoorsTek and its predecessor companies have existed for 104 years. Covalent and its predecessors have been around for 96 years.
“It’s perfect for us,” he said. “It’s that history, combined with (Covalent’s) manufacturing operations and materials expertise.”
Japan is the world’s largest market for advanced ceramics, according to . The Asia-Pacific region is forecast to emerge as the fastest-growing market with a compounded annual growth rate of 8.1 percent by 2020.
The report said that rising production of automobiles in countries such as India and China bodes well for advanced ceramics.
Covalent reported net sales for fiscal year 2013-14 of $260.6 million and net income of $12.8 million. CoorsTek, privately owned by members of the Coors family, does not report financial results.
Steve Raabe: 303-954-1948, sraabe@denverpost.com or twitter.com/steveraabedp
