EaglePicher Electro-Optic Materials

A diversified industrial manufacturer whose EOM products are found in fiber-optic glass, military infrared and night vision systems, and solar panels for satellites.

Engagement Goals

Brookwood advised EaglePicher in the divestiture of its EOM division, representing Brookwood's third engagement with EaglePicher.

Engagement Process and Outcomes

The Situation – EaglePicher had received unsolicited interest from EOM's primary competitors and engaged Brookwood to assist in exploring a sale transaction. Although the germanium business unit was much larger than the gallium unit, EaglePicher planned on selling either both units in a single transaction or just liquidating the gallium unit if a buyer was not found.

Maximizing Value – Brookwood recommended a broader and more structured process to maximize overall value. Brookwood decided to split EOM and market the two units separately. The engagement team then contacted 18 buyers and held four management presentations; 50% of buyers were non-U.S.

Superior Results – The germanium business was sold to Brussels-based Umicore N.V. at an extremely favorable valuation in spite of declining performance while the gallium unit was sold through a management-led buyout transaction that added significant incremental value beyond value proposed for business as one entity.