Affiliate of Channel Technologies Group buys assets of H.C. Materials

An affiliate of Channel Technologies Group, LLC ("CTG"), a manufacturer of piezoelectric ceramics, transducers and complex sonar and navigation systems used in the defense, medical and energy industries, today announced it has acquired the assets of H.C. Materials Inc. and its affiliates (collectively, "HCM") from Dr. Pengdi Han ("Dr. Han"). As part of the acquisition, Dr. Han will become an equity owner of CTG, as well as an active board member. Other terms of the transaction were not disclosed. CTG is a portfolio company of Blue Wolf Capital Fund II, L.P.

The acquisition enables CTG to capitalize on HCM's global recognition and leadership in the piezoelectric single-crystal arena, especially within the medical ultrasound market. It also consolidates CTG's position as a global leader in the ceramic-based piezoelectric industry.

Ralph L. Phillips, CEO of CTG, said, "This is an important strategic step for CTG as we continue to grow in mission critical segments of the defense, energy and medical technology sectors. The addition of H.C. Materials' single-crystal technology strengthens our advanced materials segment, as well as our ability to deliver the high-quality, state-of-the-art technological applications demanded by our customers. We welcome H.C. Materials to the CTG team and are excited to expand the suite of cutting-edge solutions we are able to offer our customers."

"By combining the capabilities of our two companies, we can further innovate and better address our customers' needs," said Dr. Pengdi Han, founder and president of H.C. Materials. "The core processes and techniques developed by H.C. Materials provide it with a leading global position. We are very excited about working with our new partners at Channel Technologies to create new applications for single-crystal piezoceramics."

HCM's operations will remain in its current Bolingbrook, Illinois location. CTG will continue to invest in research and development into next-generation applications for piezoelectric ceramics and single-crystals in both Bolingbrook and Santa Barbara.

Haranjeet Narulla, Principal at Blue Wolf, said, "We look forward to a long and fruitful partnership with Dr. Han as we continue to support CTG's growth, including diversifying its product offering through strategically important acquisitions."

Houlihan Lokey served as financial advisor to H.C. Materials in this transaction.