Thursday, October 19, 2006
Elmet Technologies, a Lewiston company that makes components for lighting products, flat-panel displays and other devices, is being bought by a group that includes one of the company's directors.
Harbor Acquisition Corp. of Boston is paying $108.9 million in cash and nearly 2.2 million shares of Harbor's stock, at $6 per share, for Elmet Technologies. Stockholders of Elmet Technologies will also be eligible for payments of up to $28 million --Ý60 percent cash and 40 percent Harbor stock -- based on Elmet Technologies meeting earnings targets in 2007 and 2008.
Harbor pegged the total purchase price, assuming the benchmarks are met, at $150 million.
Investors created Harbor specifically for the Elmet purchase. Its chief executive officer is Robert J. Hanks, who has been a director of Elmet Technologies since 2004.
Elmet Technologies employs about 230 people. The current management team, which includes a group that led a buyout of the company from Philips Electronics three years ago, will remain in place, according to a statement on the transaction by Harbor.
The price represents one of the largest corporate transactions in the state this year, said Peter Anania, a principal of Leaders LLC, a Portland mergers-and-acquisitions firm, and it's positive for the state because Harbor indicated that Elmet Technologies' operations will remain in Lewiston.
"It sounds like something that will stay in place and it always helps to bring capital into the state," Anania said, adding that Harbor's financial backing will provide Elmet Technologies with access to money it needs to grow.
Jack Jensen, Elmet Technologies' chief executive officer, echoed that in his statement on the purchase.
"Having access to capital through the public markets with Harbor provides us with the optimal alternative for assuring the company's continued success," he said. Jensen did not return a call seeking comment on the deal.
Elmet Technologies has been focusing on developing molybdenum- and tungsten-based components that are used in a wide array of high-tech devices, such as medical imaging devices, MP3 players and digital video recorders.
The purchase is expected to be completed early next year and Harbor will change its name to Elmet Technologies Holdings after the deal closes.
Staff Writer Edward D. Murphy can be contacted at 791-6465 or at:
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