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Original Source: FD (FAIR DISCLOSURE) WIRE
PARTICIPANTS
. Steve Cantor, Entegris, VP Corporate Relations . Gideon Argov, Entegris, President & CEO . Brett Hodess, Merrill Lynch, Analyst
. Gregory Graves, Entegris, SVP & CFO . John Goodman, Entegris, CTO . Brian Lee, Citigroup, Analyst . Dan Leonard, First Analysis, Analyst
OVERVIEW
ENTG reported to acquire Poco Graphite in an all cash deal valued at $158m. Expects the deal to be neutral to earnings in 2008 and accretive in 2009.
FINANCIAL DATA
A. Key Data From Call 1. Transaction value = all cash deal at $158m.
PRESENTATION SUMMARY
S1. Poco Graphite Acquisition (G.A.) 1. Acquisition Details: 1. Reached an agreement to acquire privately held Poco Graphite.
2. Believes the addition of Poco provides some important benefits
to ENTG. 1. It is a strong, profitable growing business with a proven track record and a well-established position in its market. 2. It adds another consumable product line to Co.'s mix.
3. It builds on materials science capabilities and it adds to
Co.'s base in the semiconductor market, while adding a growth vector to diversify its business. 2. Poco Graphite: 1. Poco represents the next leg of ENTG's strategy to build a materials-based business following the acquisition of a Specialty Coatings business in Aug. 2007. 2. Poco, leading provider of specialized graphite and silicon carbide products to semiconductor market and to other
high-performance industries. 3. Annualized sales, approx. $65m. 1. Addresses a market that is more than 90% recurring, and is expected to grow by more than 10% annually over the long-term.
4. Poco's semiconductor-related business represents approx. 40%
of its total revenues. 1. Driven by the move of manufacturers away from using materials such as metal, quartz and silicon in favor of graphite and silicon carbide. 3. Products: 1. Poco's products are used in: 1. Etch. 2. Ion implant. 3. CVD applications and tools. 2. For etch applications, Poco provides consumable components to deliver and confine processed gases and …