said he planned to combine with
in a merger that brings together two chemical companies that make important components for the semiconductor industry.
Versum shareholders will receive 1
The combined company, which will have a market value of nearly $ 8 billion based on closing prices on Friday, will deliver products for the purification, protection and transportation of materials used in the manufacturing process in semiconductors and other high-tech industries.
The company will retain the name of Entegris and will be headquartered in Billerica, Mass., With a strong operational presence in Tempe, Arizona.
The Wall Street Journal reported news of the merger on Sunday night.
Entegris, with a market value of 4.4 billion dollars, is not unknown for deals. The company was founded in 1966 as Fluoroware. After the merger 20 years ago, it was renamed Entegris and became public in 2000. Five years later, the company expanded with a new merger, this time with Mykrolis Corp. In 2014 Entegris purchased the electronic chemicals supplier ATMI Inc. 3500 employees.
Versum, based in Tempe, Arizona, was once part of Air Products & Chemicals Inc.'s industrial gas giant before it was released in 2016. It had a market value of $ 3.5 billion at the end of Friday .
Entegris Chief Executive Officer Bertrand Loy will be Chief Executive Officer of the new company, Chief Financial Officer of Entegris Greg Graves as Chief Financial Officer. Mr Loy became part of Entegris in 2005 as part of the merger with Mykrolis. Michael Valent's general adviser will serve as the chief adviser to the combined company. Entegris will get five driving positions while Versum is expected to have the remaining four.
The development of the "Internet of Things" provides semiconductor companies with new growth opportunities as more and more products – from cars to household products – Over the past years, the wave of consolidation has hit the industry as chip makers strive to position themselves better in the changing landscape and this could give an incentive to their suppliers to gain extra weight by demarcation.
Versum sales have risen. 22 percent to $ 1.37 billion in the fiscal year ending September 30, while its net profit rose slightly to $ 204.7 million. In Entegris, sales for the nine months ended September increased by 16% over the same period last year to $ 1.15 billion. Net profit jumped 41 percent to $ 160 million.
The deal contributes to what is shaping up as another difficult year for mergers, despite exchange volatility and political uncertainty. Earlier this month, the pharmaceutical company
agreed to buy
for $ 74 billion and a financial-tech company
agreed to buy
for 22 billion US dollars.
The chemical industry has also been busy consolidating in recent years, with Dow Chemical Co.
combining and industrial gas companies
also agrees to assemble. Dana Mattioli at firstname.lastname@example.org
Appeared in the press release on January 28, 2019 as "Entegre, Versum in Talks to Combine".