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Costa Mesa's Ceradyne inks deal with Diaphorm Tech
Company also cuts 2009 revenue, earnings expectations.
By Kristen SchottPublished: June 08, 2009 10:28 AM
Costa Mesa-based Ceradyne Inc. is acquiring Diaphorm Technologies' ballistic combat and noncombat helmet business for $9.5 million. The deal includes nearly all assets, technology and intellectual property related to the helmets.
Under the deal, Ceradyne, which manufactures technical ceramic products, will also assume $300,000 of liabilities and will pay as much as $10 million over the next five years based on performance and revenues garnered from Diaphorm's existing products, as well as new products produced with the company's technology.
With the acquisition, Ceradyne hopes to combine its experience in body armor programs with the helmet-forming technologies of Diaphorm, thereby becoming a key developer of enhanced combat helmets. The products would offer increased levels of protection.
The news comes at a tough time for the company: Ceradyne also revised its fiscal 2009 revenue and earnings expectations to 70 cents per share compared to the $1.60 forecasted earlier this year. The number does not include the closing of its French manufacturing facility or the impact of the Diaphorm deal.
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Under the deal, Ceradyne, which manufactures technical ceramic products, will also assume $300,000 of liabilities and will pay as much as $10 million over the next five years based on performance and revenues garnered from Diaphorm's existing products, as well as new products produced with the company's technology. With the acquisition, Ceradyne hopes to combine its experience in body armor programs with the helmet-forming technologies of Diaphorm, thereby becoming a key developer of enhanced combat helmets. The products would offer increased levels of protection. The news comes at a tough time for the company: Ceradyne also revised its fiscal 2009 revenue and earnings expectations to 70 cents per share compared to the $1.60 forecasted earlier this year. The number does not include the closing of its French manufacturing facility or the impact of the Diaphorm deal. NEXT PAGE >> Related headlines Irvine-based Endocare acquired for $16 million Huntington Beach-based Quiksilver restructures finances Toyota Material Handling subsidiary launches new truck |
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