Ceramic Industry

Ceradyne Completes ESK Acquisition

September 1, 2004
Ceradyne, Inc. has completed the acquisition of ESK Ceramics GmbH & Co. KG, a Germany-based manufacturer of industrial technical ceramic powders and advanced technical ceramic products. The purchase price, including the amount paid to the seller and assumed liabilities, is approximately $142 million (at an exchange rate of $1.2338/Euro). The purchase price was funded with a $110 million term loan provided by a syndicate of lenders led by Wachovia Bank, and the balance with a portion of Ceradyne's existing cash. Interest on the term loan is LIBOR plus 2%. The calculation of the purchase price using purchase accounting under U.S. generally accepted accounting principals has not yet been finalized. The company believes the acquisition will be accretive.

"The acquisition of ESK is one of the most exciting milestones in the company's 37-year history," said Joel Moskowitz, Ceradyne's chief executive officer. "It provides Ceradyne substantive product, market and global diversity by reducing our dependence on military spending and, at the same time, allowing us rapid access to industrial markets of Europe and Southeast Asia, particularly China and India."

For additional information, visit http://www.ceradyne.com