Rogers buys Arlon for €139 million
Rogers, Connecticut — Rogers Corp. has closed its transaction to acquire Arlon LLC, a global provider of high frequency circuit materials and engineered silicones, from Handy & Harman Ltd. for $157 million (€139 million).
David Mathieson, vice president of finance and chief financial officer, said on a 23-Jan conference call discussing the transaction that Rogers financed the deal with $125 million from an existing revolving credit facility and the rest through the firm’s balance sheet cash.
“We believe the combination of Rogers and Arlon brings compelling benefits to our customers, accelerates Rogers’ growth and delivers significant value to our shareholders,” Bruce Hoechner, Rogers president and CEO, said on the call.
Arlon operates three manufacturing plants — in Bear, Delaware; Rancho Cucamonga, California; and Suzhou, China — with total employment of about 320.
The firm reported revenue of $100.4 million and operating income of $16.7 million for the 12-month period ending Sept. 30.
Hoechner said about 75 percent of Arlon’s sales came from the circuit materials business with the remaining 25 percent generated from silicone technologies.
Rogers said Arlon would bring new capabilities in precision-calendered silicones, silicone-coated fabrics and specialty extruded silicone tapes. Used primarily for electrical insulation, these materials serve a wide range of applications across many market segments, including aviation, rail, power generation, semiconductor, food service, medical and general industrial.
Hoechner said Arlon’s silicone product technology has been strongest in North America and cited strong growth potential in both Asia and Europe.
Arlon produces its circuit materials at all three facilities. Its two largest markets for circuit materials are communications infrastructure and military/aerospace electronics. It also serves customers in the automotive segment.
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