June 10, 2009 (FinancialWire) — Ceradyne, Inc. (NASDAQ: CRDN) said it has acquired substantially all of the business and assets and all technology and intellectual property related to ballistic combat and non-combat helmets of Diaphorm Technologies.

The purchase price consists of $9.5 million in cash paid at closing, the assumption of around $300,000 of liabilities, plus contingent consideration not to exceed $10 million over the next five years based upon performance milestones and revenues achieved during that period from Diaphorm’s existing products and new products developed using Diaphorm technology.

Ceradyne used a portion of its existing cash for the payment made at closing.

The company said its strategy is to combine its successful track record in body armor programs with the proprietary helmet-forming technologies of Diaphorm to create a “world class” manufacturer of enhanced combat helmets.

Salem, New Hampshire-based Diaphorm was founded in 2004 to conduct research and to manufacture and market ballistic helmets. Diaphorm currently manufactures polymer based ballistic helmets for law enforcement, security and paramilitary markets.

Costa Mesa, California-based Ceradyne develops, manufactures, and markets technical ceramic products and components for defense, industrial, automotive/diesel, and commercial applications.

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