KEMET Acquires Foil Facility

GREENVILLE, S.C., June 14, 2011 /PRNewswire/ -- KEMET Corporation (NYSE: KEM), a leading manufacturer of tantalum, ceramic, aluminum, film, paper and electrolytic capacitors, today announced its acquisition of Cornell Dubilier Foil, LLC ("CDF"), a Tennessee based manufacturer of foils utilized as a core component in the manufacture of electrolytic capacitors.  The total consideration paid in the transaction is $15 million.

"This acquisition is a first step in the strategic direction we outlined recently to find opportunities to vertically integrate our operations to better control our supply sources and our cost structure," said Per Loof, Chief Executive Officer of KEMET.  Chuck Meeks, KEMET's Executive Vice President, Ceramic, Film and Electrolytic Business Group, said, "The capability associated with this facility provides tremendous synergy with our existing capacitor operations, and fits well with our long-term strategy to increase the level of vertical integration in our material supply chain."  

Established in 1990, the facility was previously a subsidiary of Panasonic Electronic Devices Corporation of America.  Most recently, CDF was a subsidiary of Cornell-Dubilier Marketing, Inc. ("CDM") and an affiliate of the Cornell group of companies. The foil facility is one of the largest of its kind in North America.  The primary focus of the operations going forward will be the formation of aluminum foil to support KEMET's Aluminum Electrolytic Capacitor operations, as well as the formed foil needs of the Cornell-Dubilier affiliated companies and the existing customer base of the foil facility.  As part of the transaction, the Cornell group of companies will retain a relationship with KEMET under a long-term supply agreement.

"We viewed KEMET as our most strategic buyer for this subsidiary with the capabilities to maintain the high quality of material that both of us require for our finished products, " said Jim Kaplan, President of CDM.  "Through this transaction we have established a very good working relationship with KEMET and we look forward to continuing it under our supply agreement," continued Kaplan.

Winchester Capital acted as advisor to KEMET on the transaction.

About KEMET

KEMET's common stock is listed on the NYSE under the symbol "KEM." At the Investor Relations section of our web site at http://www.KEMET.com/IR, users may subscribe to KEMET news releases and find additional information about our Company. KEMET applies world class service and quality to deliver industry leading, high performance capacitance solutions to its customers around the world and offers the world's most complete line of surface mount and through-hole capacitor technologies across tantalum, ceramic, film, aluminum, electrolytic, and paper dielectrics. Additional information about KEMET can be found at http://www.kemet.com.

Cautionary Statement on Forward-Looking Statements

Certain statements included herein contain forward-looking statements within the meaning of federal securities laws about KEMET Corporation's (the "Company") financial condition and results of operations that are based on management's current expectations, estimates and projections about the markets, in which the Company operates, as well as management's beliefs and assumptions. Words such as "expects," "anticipates," "believes," "estimates," variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of the date hereof. The Company undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise.

Factors that may cause actual outcome and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to, generally adverse economic and industry conditions, including a decline in demand for the Company's products. Other risks and uncertainties may be described from time to time in the Company's reports and filings with the Securities and Exchange Commission.

SOURCE KEMET Corporation

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED