Sumitomo Chemical: Acquisition of OLED manufacturer CDT
On July 31, 2007, Sumitomo Chemical announced an agreement with Cambridge Display Co., Ltd. (CDT) to acquire CDT as its wholly-owned subsidiary, with a planned acquisition price approaching $285 million. Upon approval by the CDT Shareholders' Meeting (expected to be held this fall), Sumitomo Chemical will pay compensation to CDT shareholders for the acquisition of all issued shares of CDT. Related to the transaction, CDT's major shareholder, Kelso & Company, has reached an agreement with some senior CDT executives and other shareholders (accumulatively holding 43% of CDT's common shares) to vote at their respective shareholders' meetings. The shares support this transaction.
Sumitomo Chemical pointed out that display materials are one of its main business areas. Although Sumitomo Chemical continues to expand its LCD materials business, the company is also focusing on the development of next-generation display materials, with particular emphasis on POLED (polymer organic light-emitting diodes).
Sumitomo Chemical began developing POLEDs in 1998. By 2001, Sumitomo Chemical and CDTInc., a wholly-owned subsidiary of CDTLtd, reached a technical assistance agreement (including licensing of luminescent materials technology). In May 2002, Sumitomo Chemical invested directly in CDTLtd. In order to establish a closer relationship. In November 2005, Sumitomo Chemical and CDTLtd established a joint venture company, SUMATION, to develop, manufacture and sell POLED materials. By combining the technologies of the two companies, the performance of the materials has been greatly improved and is now approaching the practical application level.
CDT has a large number of basic intellectual property related to OLED display and technology, while Sumitomo Chemical has a series of advanced chemical technologies, and the two companies also have high-end technical talent and material development expertise. The acquisition integrates the business resources of both companies and will ensure that Sumitomo Chemical improves the performance of lighting materials and OLED display materials, further accelerates the development of commercial technologies for OLED display manufacturing, and provides customers with complete solutions from materials to processes. In addition, Sumitomo Chemical will focus on the early commercialization of OPLED displays, especially widescreen and high definition TVs, seeking the possibility of forming alliances with display manufacturers.
About SumitomoCorporation
SumitomoCorporation's expertise in international finance, project management, new business development and investment is recognized throughout Japan and the company is one of the world's leading trading companies.
About CambridgeDisplay
Cambridge Display Technology (CDT) is a world leader in the research, development and commercialization of luminescent polymers (PLEDs) and luminescent dendrimers for flat panel displays, illumination, sensors and photovoltaic devices.
These technologies will play a role in electronic display products in the information management, communications and entertainment industries. Features of these technologies include low power consumption, low thickness and light weight, a wide viewing angle, better video imaging performance, and the potential for display on plastic substrates.
To date, production licenses have been issued to companies such as DeltaOptoelectronics, DuPontDisplays, MicroEmissiveDisplays, OSRAM, Philips and Seiko-Epson.
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Sumitomo Chemical pointed out that display materials are one of its main business areas. Although Sumitomo Chemical continues to expand its LCD materials business, the company is also focusing on the development of next-generation display materials, with particular emphasis on POLED (polymer organic light-emitting diodes).
Sumitomo Chemical began developing POLEDs in 1998. By 2001, Sumitomo Chemical and CDTInc., a wholly-owned subsidiary of CDTLtd, reached a technical assistance agreement (including licensing of luminescent materials technology). In May 2002, Sumitomo Chemical invested directly in CDTLtd. In order to establish a closer relationship. In November 2005, Sumitomo Chemical and CDTLtd established a joint venture company, SUMATION, to develop, manufacture and sell POLED materials. By combining the technologies of the two companies, the performance of the materials has been greatly improved and is now approaching the practical application level.
CDT has a large number of basic intellectual property related to OLED display and technology, while Sumitomo Chemical has a series of advanced chemical technologies, and the two companies also have high-end technical talent and material development expertise. The acquisition integrates the business resources of both companies and will ensure that Sumitomo Chemical improves the performance of lighting materials and OLED display materials, further accelerates the development of commercial technologies for OLED display manufacturing, and provides customers with complete solutions from materials to processes. In addition, Sumitomo Chemical will focus on the early commercialization of OPLED displays, especially widescreen and high definition TVs, seeking the possibility of forming alliances with display manufacturers.
About SumitomoCorporation
SumitomoCorporation's expertise in international finance, project management, new business development and investment is recognized throughout Japan and the company is one of the world's leading trading companies.
About CambridgeDisplay
Cambridge Display Technology (CDT) is a world leader in the research, development and commercialization of luminescent polymers (PLEDs) and luminescent dendrimers for flat panel displays, illumination, sensors and photovoltaic devices.
These technologies will play a role in electronic display products in the information management, communications and entertainment industries. Features of these technologies include low power consumption, low thickness and light weight, a wide viewing angle, better video imaging performance, and the potential for display on plastic substrates.
To date, production licenses have been issued to companies such as DeltaOptoelectronics, DuPontDisplays, MicroEmissiveDisplays, OSRAM, Philips and Seiko-Epson.
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