Corning Incorporated to Acquire Bargoa S.A. Acquisition to build on Bargoa's strong telecommunications presence in Brazil
CORNING, N.Y., Feb. 27, 2013 /PRNewswire/ -- Corning Incorporated (NYSE: GLW) announced today that it has signed an agreement with Abengoa (MCE: ABG) to acquire its Brazilian subsidiary, Bargoa S.A., a leading provider of connectivity solutions for the Brazilian telecommunications sector. The terms of the agreement are not being disclosed. Pending regulatory approvals, the acquisition is expected to be completed by the end of the second quarter in 2013.
With its main activities located in Rio de Janeiro, Brazil, Bargoa provides a wide range of connectivity solutions in the rapidly growing Brazilian telecommunications marketplace. Upon closing, Bargoa will be integrated into Corning's telecommunications business segment.
Corning currently plays an active role in the telecommunications industry in Brazil, the largest economy in Latin America, and sixth largest economy in the world. The acquisition will strengthen Corning's telecom activities in the region – building on Bargoa's strong brand, high-quality manufacturing, and flexible design capabilities. These competencies complement Corning's innovative telecommunications portfolio and will enable the company to extend its leadership as a connectivity solutions company.
"We are very excited about the opportunity to expand Corning's presence in Brazil," said Clark S. Kinlin, executive vice president, Telecommunications Business Group. "Bargoa has a proven history of delivering customer-driven solutions based on excellent manufacturing capabilities. We look forward to building a bright future in the Brazilian telecom market when Bargoa's talented team joins us."
Forward-Looking and Cautionary Statements
This press release contains "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995), which are based on current expectations and assumptions about Corning's financial results and business operations, that involve substantial risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: the effect of global political, economic and business conditions; conditions in the financial and credit markets; currency fluctuations; tax rates; product demand and industry capacity; competition; reliance on a concentrated customer base; manufacturing efficiencies; cost reductions; availability of critical components and materials; new product commercialization; pricing fluctuations and changes in the mix of sales between premium and non-premium products; new plant start-up or restructuring costs; possible disruption in commercial activities due to terrorist activity, armed conflict, political or financial instability, natural disasters, adverse weather conditions, or major health concerns; adequacy of insurance; equity company activities; acquisition and divestiture activities; the level of excess or obsolete inventory; the rate of technology change; the ability to enforce patents; product and components performance issues; retention of key personnel; stock price fluctuations; and adverse litigation or regulatory developments. These and other risk factors are detailed in Corning's filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the day that they are made, and Corning undertakes no obligation to update them in light of new information or future events.
About Corning Incorporated
Corning Incorporated (www.corning.com) is the world leader in specialty glass and ceramics. Drawing on more than 160 years of materials science and process engineering knowledge, Corning creates and makes keystone components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences. Our products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy, and metrology.
Abengoa (MCE: ABG) is an international company that applies innovative technology solutions for sustainable development in the energy and environment sectors, generating electricity from the sun, producing biofuels, desalinating sea water and recycling industrial waste. (www.abengoa.com)
About Bargoa S.A.
Bargoa is a company dedicated to the manufacturing of thermo injected products, situated in Rio de Janeiro, Brazil. Since its founding in 1975, Bargoa has grown year after year, thanks to a permanent effort in search of more quality, as much as in relation to our products as in the training of our employees and the update of the machines and working processes. Our company currently makes use of all the means necessary to develop a great variety of injected products and also integrated with elements of metallic or electronic connection. (www.bargoa.com.br)
SOURCE Corning Incorporated