AlliedSignal Sells Laminate Systems Business; Acquires Semiconductor Business

As part of a plan to reposition and strengthen its electronic materials business, AlliedSignal (Morristown, NJ) has sold one business and acquired another. The company sold its Laminate Systems business to Rutgers, supplier of industrial plastics and chemicals, for $425 million, and purchased Johnson Matthey Electronics from Johnson Matthey (London) for $655 million.

According to Lawrence Bossidy, AlliedSignal chairman and CEO, the deals are the latest steps in AlliedSignal's continuing strategy to improve its global business portfolio by divesting non-strategic businesses and making higher-value complementary acquisitions. Laminate Systems operates in a lower-margin industry, while Johnson Matthey Electronics is in higher-margin specialty markets such as advanced circuits and product assembly, wafer fabrication, and semiconductor packaging materials, Bossidy said.

Bossidy added that the acquisition combines AlliedSignal's semiconductor chemistry with Johnson Matthey's metallurgical expertise. The deal gives AlliedSignal entree to the growing high-density interconnect industry, which includes the new generation of smaller cell phones, pagers, and other telecommunications devices.

AlliedSignal Inc. is an advanced technology and manufacturing company serving customers with aerospace and automotive products, specialty chemicals, performance fibers, plastics, and advanced materials.

For more information, call AlliedSignal at 973-455-2000 or 800-707-4555.