Dow Corning buys Sterling Semiconductor
Dow Corning will acquire the manufacturing and R&D assets of Sterling in Danbury, Connecticut and Tampa, Florida, and will hire 32 of Sterling’s current employees.
The sale was approved by the US Bankruptcy Court in the District of Delaware as part of Uniroyal s ongoing Chapter 11 proceedings, which are allowing the company to undergo a reorganization in order to resolve its financial problems.
The Bankruptcy Court issued an order on December 20, 2002, approving bidding procedures for the sale of Sterling s assets. After no competing bids were received the sale to Dow Corning was approved, and became final on January 23, 2003.
Uniroyal acquired Sterling in April 2000 in a stock deal valued at around $36 million, and has since invested heavily in the SiC wafer maker. In 2002, a proposed deal to sell Sterling to Umicore fell through.
According to Uniroyal s 8-k filing, the sale enabled Sterling to pay its secured creditors and those creditors whose contracts Dow Corning assumed. The claims of Sterling s remaining creditors will be resolved in Sterling s Chapter 11 reorganization proceedings.
Dow Corning’s New Ventures Business has been investing in SiC and GaN substrate technologies for the compound semiconductor industry. "This investment will provide Dow Corning with a new opportunity to build on its core silicon-based technology and solutions strength; and demonstrate to existing and potential customers our deep commitment to this industry segment," said Dave Cornelius, Executive Director of Dow Corning New Ventures Business.
