This intellectual property was acquired from a privately-owned business located in Greenwich, Rhode Island. The manufacturing of this product will be performed at Ceradyne’s Lexington, Kentucky, location.
A key inventor of this new oil drilling bearing, Russell Ide Jr, will be joining Ceradyne as a product manager responsible for bringing this solution into full production for use in the oil field.
Ceradyne paid approximately $4 million for this acquisition, and will pay a royalty of 3% of net sales of these bearings for the life of the patents. This new product line will be incorporated into Ceradyne’s advanced ceramic operations under the leadership of David Reed, Ceradyne’s president for North American operations.
Thomas Cole, vice president of business development at Ceradyne, said: We are very pleased to have acquired this technology as it fits the Ceradyne vertical integration model very well.
