Cleveland's GrafTech has completed the $14 million acquisition of Fiber Materials.
According to a press release from GrafTech International GTI, this week saw the Cleveland-based company purchase Fiber Materials, a privately held manufacturer of highly engineered advanced carbon composite materials, for $14 million.
On the statement, Craig Shular, Chairman and Chief Executive Officer of GrafTech, commented, "We are pleased to announce the acquisition of FMI and to welcome such an excellent team to the GrafTech family. FMI adds significant technology in advanced carbon composites to our product portfolio and will aid in propelling continued growth in our Engineered Solutions segment."
GrafTech is well known as a leading manufacturer of high quality synthetic and natural graphite and carbon based products. Fiber Materials has been serving the aerospace and defense industries and manufactures high temperature insulation for use in industrial applications.
The release states that, “FMI will become part of GrafTech's Engineered Solutions business segment and employs approximately 160 people. The acquisition of FMI is a cash purchase.”
The news of the acquisition came just four days after GTI reported net sales of $346 million, a 35 percent year-over-year increase, and EBITDA of $78 million, a 47 percent improvement on Q32010. Net income increases 55 percent to $40 million versus the same period in 2010.
Shular commented, "We have successfully increased our borrowing capacity at very favorable rates which provides us with improved financial flexibility and positions us well for future internal and external growth opportunities."
ACTION ITEMS:
Bullish:
Traders who believe that the acquisition will improve GrafTech might want to consider the following trades:
Traders who believe that it won't make any difference may consider alternate positions:
Market News and Data brought to you by Benzinga APIsBullish:
Traders who believe that the acquisition will improve GrafTech might want to consider the following trades:
- GTI reported net sales of $346 million, a 35 percent year-over-year increase.
Traders who believe that it won't make any difference may consider alternate positions:
- It is a slight step into the unknown so investors will be watching with interest.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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