Henkel Sells Thermal-Clad Dielectric Materials Business to Polytronics Technology
Polytronics Technology Corp. announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance.
Polytronics is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process.
Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US.
The purchase includes all assets and business interests, including equipment, know-how, patents, trademarks, materials, merchandise and factories in Prescott, Wisconsin, Polytronics said.
The deal would include continuing the contracts of 273 existing employees and ongoing client relationships, but not debts, it said.
Through the deal, Polytronics expects to form a joint research and development platform, secure customers and sales channels, and explore new markets, such as aerospace and defense, to elevate its competitiveness and efficiency, it said in a regulatory filing.
“If synergy is achieved after post-close integration, there would be positive impacts on [Polytronics’] net value per share and net profit per share,” the company said in the filing. “If this deal is approved by the Committee on Foreign Investment in the US, the closing of the transaction will occur in the fourth quarter of 2020 or the first quarter of 2021.”
Calling the deal a marriage of two strong partners, Polytronics chairman Edward Chu said that he anticipates a 50 percent increase in revenue and a 15 percent increase in profit for Polytronics next year.
The company’s main products include polymeric positive temperature coefficient thermistors, transient voltage suppressors, thyristor surge suppressors, thermal panels for LED lighting and backlighting, as well as LED lamps, according to its Web site.