CHANDLER, ARIZONA, April 24, 2006 - Isola Group S.a.r.l., a designer, developer and manufacturer of high performance base materials for the printed circuit board industry, announced today that it has completed the acquisition of Polyclad Laminates from Cookson Group plc, for a cash consideration of $91M following approval by European Union antitrust authorities. Polyclad manufactures a line of laminate and prepreg materials similar to Isola Group.
According to Ray Sharpe, CEO of the new corporation, "This acquisition allows us to broaden our product portfolio and strengthen our geographic footprint. The product lines for both companies are very complementary resulting in the most complete product offering in the industry."
Isola plans to spend approximately $50 million U.S. dollars on cash restructuring charges to ensure more efficient use of global manufacturing capacities, creating a global supplier capable of competing effectively in the long term with laminate suppliers based solely in low-cost regions of the world. Accordingly, the following operations were announced as key strategic manufacturing sites: North America: Elk Grove, CA; Ridgeway, SC; Chandler, AZ and Fremont, CA. Europe: Duren, Germany; Bottogone and Brugherrio, Italy (Isola Fabrics srl). Asia Pacific: Taiwan and Singapore. China: Huizhou, Dalian and Suzhou. With this expanded footprint, no other laminator offers a global geographic Supply Chain comparable to Isola. This restructuring will also include significant investment in the Chandler, Arizona R&D center and the establishment of an expanded Asia Pacific technical service/R&D center in Singapore.
In North America, the combined companies will be merged into a single entity, Isola USA Corporation, which will be co-located with the Isola Group S.a.r.l.. global headquarters in Chandler, Arizona. U.S. operations will continue to be managed by the corporate functional team headed by Ray Sharpe. Sales in North America will be handled through a combination of direct sales force, select Polyclad sales agents and Isola's exclusive distributor, Insulectro. Chris Benincasa of Polyclad, will join the Isola Corporate team as VP Procurement and Supply Chain.
European headquarters will remain in Italy, led by Augusto Meozzi, Isola President of European Operations. Increased use of distribution and sales agents from both companies will provide continuity to the customer base.
Isola's Asia Pacific headquarters will be relocated from Taiwan to Hong Kong with Bob Haskins of Polyclad becoming President of Isola Asia Pacific. David Lee, formerly President of Isola Asia, has elected to retire after 16 years of loyal and dedicated service. Matt LaRont, VP Asia Pacific Sales, will relocate to Hong Kong.
Isola will be working quickly with its customers to determine the best transition of product to the strategic manufacturing sites, as well as, which products will be rationalized. Isola CEO Ray Sharpe stressed that the company will be in frequent contact with Isola and Polyclad customers as the corporation transitions, and expects to announce within a few days, the complete restructuring plan to its customers, associates and suppliers.