Announcements
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Supermetals Acquisition Completed
Monday, January 23, 2012
Global Advanced Metals’ (GAM) has completed the US$400 million acquisition of Cabot Corp.’s Supermetals business following approval by US regulatory authorities.
The acquisition, announced in August 2011, has created a vertically integrated and global tantalum products group operating under the GAM brand. Tantalum processing plants in the United States and Japan are now combined with the
company’s existing mining and processing operations in Australia.
GAM has made an initial payment of US$175 million. This will be followed by additional payments totalling approximately US$225 million to be paid within two years, including a component linked to the successful performance of the business. Separately, GAM will purchase inventory that is no longer required by Cabot Corp.
The Supermetals business will operate as GAM Technology and the division will continue to be led by Andrew O’Donovan, who has been appointed President. GAM Technology will be headquartered in Boston with offices in Tokyo and manufacturing sites in Boyertown, Pennsylvania, USA and Aizuwakamatsu, Japan. It will continue its extensive research and development activities focused on continuous product improvement, including production of breakthrough high performance capacitor grade tantalum products for the electronics industry.
Chief Executive Officer Bryan Ellis said that GAM will meet demand for the highest quality, latest technology tantalum products for high growth applications.
“The vertical integration of our businesses transforms the company from a traditional mining business to a supplier of essential products for a wide range of applications. Our products are key to the design and manufacture of the latest smartphones, tablet computers, automobile safety management systems, aircraft and turbine engines and many other uses,” said Mr Ellis.
The company’s mining and exploration division, GAM Resources, will be led by General Manager, Max McGarvie, based in, Perth, Western Australia.