The metallurgical group SAES has reached an agreement with the US company Resonetics to divest its business of Nitinol, an alloy of nickel and titanium, for 900 million dollars, which “will allow it to develop an industrial growth plan,” the Italian company said Monday.
The price for the transfer to Resonetics of the Nitinol business of the US subsidiaries Memry Corporation and Saes Smart Material “corresponds to 17 times the adjusted EBITDA of the divestment perimeter during the period between October 1, 2021 and September 30, 2022,” it explained in a statement.
“The scope of the divestment includes all SAES production in that vertically integrated market (from Nitinol alloy smelting to component production) and located entirely in the U.S.,” added the group, which expects the transaction to close in 2023.
The transaction “will provide SAES with a significant injection of liquidity, which will allow the Group to develop an industrial growth plan, both organic and inorganic, consistent with the Group’s technical and scientific expertise, with special attention to the areas of advanced packaging and new functional materials (chemicals)”.
The Group highlights that “the Group’s activity in the sector of shape memory alloys for shape memory alloys for industrial applications (Business SMA Materials, within the SAES Industrial Division), which is not carried out by the two US subsidiaries subject to divestment and which will continue to be operated by SAES, is excluded from the assignment.
“To this end, a specific contract will be signed for the supply by Resonetics to SAES of the Nitinol raw material necessary for the Group to continue its SMA industrial activity,” he adds.
Also outside the scope of the assignment is “the Group’s medical business that uses thermostatic cables and actuators based on Nitinol”.
The company Resonetics, whose main shareholders are the global investment company Carlyle and the leading venture capital fund GTCR, is a leading company in the production of devices for the medical and life sciences industry, recalls SAES.