To enter into LED lighting market, Ceradyne has acquired a minority interest with an option to acquire all of Tempe, Arizona-based Graphite Machining Services and Innovations, LLC (GMSI). And this acquisition of GMSI will not materially affect Ceradyne's 2012 financial performance.

Ceradyne currently develops, manufactures, and markets advanced technical ceramic products and components for defence, industrial, energy, automotive/diesel, and commercial applications.

GMSI has developed a proprietary method of applying a chemical vapour deposited (CVD) SiC ceramic coating on precision machined graphite shapes. The resultant product is used in the manufacture of LEDs for the rapidly growing solid state lighting market.

David Reed, president of Ceradyne's North American Operations, comments, "We are excited about this relatively small but high technology investment in GMSI. It fits very well with our diversification strategy, coupled with our interest in building out Ceradyne's advanced technical ceramics portfolio. Furthermore, the market for efficient, environmentally friendly LED lighting systems is expected to grow very rapidly over the next ten years."