Luxfer To Acquire Neo Performance Materials In Cash & Stock Deal - Quick Facts

(RTTNews) - Luxfer Holdings PLC (LXFR) and Neo Performance Materials Inc. (NEO.TO) announced the signing of a definitive agreement under which Luxfer would acquire Neo Performance Materials for $612 million in cash and stock. Upon completion of the transaction, shareholders of Neo Performance Materials will receive $5.98 in cash and 0.395 Luxfer shares for each common share of Neo Performance Materials. Post transaction, current Luxfer shareholders will own approximately 63% of the combined company on a pro forma basis.

Headquartered in Toronto, with corporate offices in Colorado and Beijing, Neo Performance Materials specialize in the manufacturing of rare earth and rare metal-based functional materials used in many of today's advanced technologies. Neo has reported sales of $454 million and adjusted EBITDA of $69 million for the twelve months ended September 30, 2018.

Luxfer noted that the transaction immediately adds to the company's earnings per share. The transaction is expected to realize at least $15 million of cost synergies, largely from the elimination of duplicative public company costs and sourcing benefits from vertical integration of rare earths. The integration of Luxfer's zirconium chemicals business with Neo's Chemicals and Oxides unit is expected to lead to growth synergies.