Producer of mineral-based highly engineered advanced materials Luxfer, and manufacturer of rare earth and rare metal-based functional materials Neo Performance, announced that they have mutually agreed to terminate a previously announced transaction under which Luxfer would have acquired Neo for $612 million in cash and stock.
The companies made the announcement by issuing a press release in which they did not explain the reasons behind the termination of the definitive agreement they signed back in December 2018 and that was approved by each company’s Board of Directors.
Luxfer was to buy Neo for $612 million in cash and stock.
In that agreement, a Plan of Arrangement was established and it was stated that shareholders of Neo Performance Materials were to receive $5.98 in cash and 0.395 Luxfer shares for each common share of Neo Performance Materials. Once the transaction was completed, Luxfer shareholders would have owned approximately 63% of the combined company on a pro forma basis.
According to that previous document, the transaction was aimed at accelerating Luxfer’s strategy to become a leading global manufacturer of highly-engineered advanced materials for high-end applications.
The English company also said back then that it wanted to complement its portfolio with high-value rare-earth and rare metal-based products and expand its access to high-growth Asian markets.
Luxfer leadership praised Neo’s Magnequench segment as an industry leader in rare-earth powders used to manufacture magnets for performance micro motors, while Neo Performance Materials’ CEO said its then partner-to-be creates materials that are critical to many of today’s macro global trends including those promoting energy efficiency and environmental sustainability.