Montreal specialty metals producer acquires Belgium specialty metals firm

Canadian specialty metals producer 5N Plus Inc has acquired Belgium’s specialty metals firm MCP Group SA. The investment further expands 5N Plus Inc’s global reach as a supplier to the electronics industry. Based in Montreal, Canada, 5N Plus will buy the shares of MCP for a cash consideration of €105.8.
Other than that, 5N Plus will as well give a promissory note to vendors of €61.9 million and approximately 11.4 million common shares of the company will be issued to the vendors.

Commenting on the acquisition, 5N Plus President and CEO Jacques L’Ecuyer, said the Belgium investment will allow 5N Plus to significantly expand its product offerings and to establish a worldwide manufacturing and distribution platform. L’Ecuyer  said the strategic transaction fits perfectly with 5N Plus’ vision of becoming a global leader in the production of specialty metals for the clean technology market.

5N Plus produces specialty metals, compounds and wafers. It uses proprietary technologies to produce metals such as tellurium (used to produce solar cells and thermoelectric devices), cadmium (used in solar applications and nuclear radiation detectors) and other related compounds.

According to L’Ecuyer, the acquisition will position 5N Plus as the leading producer and distributor of bismuth, a market that, according to the company, is poised for future growth because the non-toxic material is being increasingly used in a variety of alloys and compounds.

5N Plus owns four material subsidiaries, 5N PV GmbH in Germany, Firebird Technologies Inc. in Trail, BC, and 5N Plus Corp. and Sylarus Technologies in Wisconsin and Utah respectively. 5N Plus is a leading producer and provider of high-purity metals and compounds for electronic applications.

Under the terms of the investment, 5N Plus will also assume MCP's debt of about €66 million. 5N Plus is the largest supplier of cadmium telluride, which is used to make thin-film solar panels. Cadmium telluride has a 10-15 per  cent cost advantage over the more widely used silicon.

5N Plus, whose biggest customer is First Solar , said the deal is expected to immediately add to its earnings and free cash flow per share. The transaction is expected to close in mid-April.

MCP produces and distributes specialty metals and their chemicals, and its expertise in gallium, indium, selenium and tellurium is expected to boost 5N Plus' position in the solar materials supply chain. 

4 March 2011

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