Materion Corporation, an Ohio-based supplier of high performing advanced materials, has agreed to acquire the electronic materials business of H.C. Starck Solutions — HCS-Electronic Materials for $380 million.

The deal was announced in late September.

Based in Newton, Massachusetts, HCS-Electronic Materials supplies tantalum- and niobium-based products and services for the semiconductor, industrial, defense and aerospace markets.

The company provides tantalum sputtering targets which are important for manufacturing semiconductor chips.

Materion said that the acquisition will add to its existing portfolio of electronic materials and thin film target solutions to position it as a major supplier to the semiconductor industry.

Furthermore, the acquisition of HCS-Electronic Materials will bring advanced manufacturing processes and technical capabilities required to address the quickly evolving technology challenges faced in designing the most advanced chip architectures and key applications for the industrial and aerospace and defense markets.

Jugal Vijayvargiya — Materion President and CEO said: “HCS-Electronic Materials is a highly strategic and transformative acquisition that builds on our strong position in the semiconductor industry and supports our goals of driving above market growth, expanding margins, and delivering consistent double-digit EPS growth.

“HCS-Electronic Materials’ leading-edge technology extends our global reach and expands our product offering to leading semiconductor chip manufacturers, as well as important industrial and aerospace & defense customers. We are excited about the opportunities ahead and look forward to welcoming HCS-Electronic Materials’ 140 highly-skilled team members to Materion.”

The revenue of HCS-Electronic Materials in 2021 is expected to be nearly $145 million. Once the transaction is completed, HCS-Electronic Materials will be part of the advanced materials segment of Materion.

The acquisition of HCS-Electronic Materials is said to consolidate on Materion’s acquisition of Optics Balzers for $160 million in 2020, which grew the company’s global position in optical thin film coatings to advance its shift to becoming a major advanced materials supplier.

Subject to regulatory approval and other customary closing conditions, the transaction is anticipated to close in Q4 2021.

  H.C. Starck Solutions, HCS-Electronic Materials, Jugal Vijayvargiya, Massachusetts, Materion Corporation, Newton, Ohio, Optic Balzers, USA