MORRISVILLE — Forge Nano has completed its acquisition of Morrisville-based protective-nanocoatings company HZO in an all-stock transaction involving about 7.3 million shares.
Forge Nano acquired all outstanding HZO equity, according to the company’s Nov. 5 release filed with the Securities and Exchange Commission. About 2.2 million shares were issued in exchange for Forge Nano shares already held by HZO, resulting in net issuance of about 5.1 million shares.
About 5.8 million shares are being issued at closing, while approximately 1.5 million shares will be held back for 12 months for post-closing adjustments and indemnification obligations. Forge Nano did not disclose a dollar value for the completed transaction.
HZO will operate as a wholly owned subsidiary under its existing brand, led by President Rachael Lerebours. The company’s employees will join Forge Nano, preserving a Morrisville operating base for a business that applies Parylene and other thin-film coatings to protect electronics from moisture, corrosion and chemicals.
Electronics-manufacturing publication Evertiq reported that the acquisition adds a high-volume production-coating business, an established global customer base and a complementary material and equipment portfolio to Forge Nano’s atomic-layer-deposition platform.
The companies said HZO’s production capacity and quality systems will support Forge Nano’s semiconductor and defense-battery programs. They plan to operate adjacent facilities in Morrisville, where Forge Nano is establishing its Forge Battery operation.
The acquisition combines HZO’s high-volume protective-coating business with Forge Nano’s atomic-layer-deposition technology. Forge Nano says the combined company expects to share manufacturing, procurement and administrative functions and offer customers coating services spanning semiconductor wafers, battery cells and finished electronic assemblies.
The completed deal shifts control of a North Carolina advanced-materials company to a publicly traded Colorado-based owner while retaining HZO’s brand, leadership and Morrisville operations. Future workforce, capital-spending and cost-savings effects were not quantified in the announcement.