TI Sells Massachusetts-based Specialty Metals and Contacts Business Units
DALLAS (Sept. 6, 2000) - Texas Instruments Incorporated (NYSE: TXN) today announced an agreement to sell its specialty-clad metals and electrical contacts business units to a new, independent company financed by Blue Point Capital Partners, a Cleveland, Ohio-based investment group. Terms of the transaction were not disclosed.
The specialty-clad metals and electrical contacts business is generally considered the "materials" part of TI's Materials & Controls (M&C) business. The new company, called Engineered Materials Solutions, Inc., is expected to maintain existing operations with few changes, using the current facilities and suppliers. Stacey Alsfeld, current manager of M&C's Engineered Materials business unit, will become CEO and president of the new company.
Approximately 450 employees who are part of the materials business in Attleboro, Massachusetts will join the new company. After the sale, TI will employ about 3,500 people, including about 800 contract workers, at its Attleboro location. For the past several years, M&C has strategically refocused its business on higher-growth markets, primarily sensors and TIRIS™, TI's industry-leading radio-frequency identification systems. Selling the materials-related portion of its business will further that strategy.
"While the specialty-clad metals and electrical contacts systems business units of M&C are strong performers and considered leaders in the metals industry, their best opportunity for continued success is in an organization focused on that business," said Tom Wroe, M&C president. "This sale accomplishes that and at the same time enables M&C to continue its acceleration toward higher-growth areas and increase market penetration for its remaining businesses."
The speciality-clad metals and electrical contacts business had about $120 million in revenue last year. The transaction is expected to be completed by late in the third quarter or early in the fourth quarter.