Dow to acquire Raychem Power Materials

In a move to expand its share of the fabricated thermal interface materials market, Dow Corning has signed a definitive agreement to acquire the Raychem Power Materials Business Unit of Tyco Electronics.

Under the terms of the agreement, Dow Corning will obtain the Power Materials Business Unit’s fabricated thermal interface materials (TIMs), electromagnetic-interference (EMI) and radio-frequency-interference (RFI) shielding products, as well as certain connector sealing products that have been sold under the trademarks Geltek, Heatpath and Dbseal.

Sales of these products in 2002 totalled approximately $9 million.

Along with the Tyco Electronics Power Materials Unit’s three product lines, Dow Corning will acquire its intellectual property rights, including patents associated with the product lines. The products will continue to be manufactured at the facility currently used for production in Menlo Park, CA. All of the Tyco Electronics Power Materials Unit employees will become employees of Dow Corning Corporation.

While Tyco Electronics’ fabricated TIMs product line is central to the proposed acquisition, the unit’s connector sealing and EMI/RFI product offerings also will extend Dow Corning Electronics’ macroelectronics materials family. The Power Materials connector sealing products will be a new addition to Dow Corning’s offerings for the automotive industry, while the EMI/RFI products will augment Dow Corning’s existing EMI/RFI product portfolio.

The acquisition is expected to be complete by the end of the first quarter of 2003.