Corning has reached an agreement to acquire 100% of the stock of Tropel Corporation in a transaction valued at approximately $190 million, based on the closing price of Corning common stock on January 22, 2001.
Located in Fairport, NY, Tropel is a manufacturer of precision optics and metrology instruments for the semiconductor industry.
Under the terms of the acquisition, Corning will pay approximately $60 million in cash and 1.95 million shares of Corning common stock. The company expects the acquisition to be completed by the end of the first quarter, 2001, pending customary regulatory approval. The investment is expected to be neutral to Corning’s 2001 pro forma earnings and accretive in 2002.
Tropel will become a wholly owned subsidiary of Corning Incorporated, operating as a unit of the company’s semiconductor materials business within its Specialty Materials division. John Bruning will continue as President and CEO of the business, to be known as Corning Tropel.
Tropel’s product lines of optical components, subsystems, and optical metrology instruments, specially designed and manufactured for wafer, photomask, and semiconductor equipment suppliers will complement Corning’s portfolio of microlithography optical materials and allow the company to expand its commitment to the semiconductor industry.