News

27 August 2009

 

Neo Material to acquire Recapture Metals

Toronto-based Neo Material Technologies Inc, which produces neodymium-iron-boron magnetic powders, rare earths and zirconium-based engineered materials for applications including mobile phones and micro-chips, has agreed to acquire privately held Recapture Metals Ltd of Peterborough, Ontario, Canada.

Recapture produces, reclaims and refines high-value niche metals and their compounds used mainly in the wireless, LED, flat-panel, solar and catalyst industries, including gallium and indium. In addition to high-purity gallium, Recapture manufactures gallium trichloride for producing organometallic Ga compounds. Primary gallium production takes place in Stade, Germany and secondary gallium production in both Blanding, UT, USA and Peterborough, Canada. The firm has about 65 staff in total. Revenue was CDN$24.1m and CDN$22.5m in 2007 and 2008, respectively.

Neo will issue 4.5 million new common shares and pay CDN$6.5m (about US$6m) in cash to Recapture’s shareholders (subject to closing adjustments). The deal is expected to close on 31 August. Neo will also make additional payments in cash or new common shares, at Neo’s option, conditional upon certain agreed upon earnings before interest, taxes, depreciation and amortization (EBITDA) targets for three calendar years (starting in 2010) being met or exceeded.

“This acquisition provides Neo with a solid platform and is a first step in our stated strategy to diversify into other complementary rare elements and specialty materials,” says Neo Material’s president & CEO Constantine Karayannopoulos. “Recapture’s strong hydrometallurgical skills in both primary production and recycling coupled with Neo’s global sales organization, technical skills and presence in Asia make a powerful combination,” he adds. Neo Material has 1300 staff in 15 locations across 10 countries, including processing units in China.

“Partnering with Neo will provide experience, resources and diversification to further facilitate growth and implementation of our long-term vision,” says Recapture's president Larry Seeley.

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Visit: www.neomaterials.com

Visit: www.recapturemetals.ca