EnPro Industries, a North Carolina-based industrial technology company, has signed an all-cash deal worth $850 million to acquire NxEdge, a foundry solutions provider, from Trive Capital.

NxEdge, which is headquartered in Boise, Idaho, serves the semiconductor value chain with advanced manufacturing, cleaning, coating, and refurbishment services.

The foundry solutions provider caters to top tier international integrated device manufacturers (IDM), original equipment manufacturers (OEM), and other customers across the semiconductor supply chain.

NxEdge has six main facilities in Idaho and California.

Jackson Chao — Founder and CEO of NxEdge said: “We are thrilled with the opportunity to join Enpro and bring together our highly complementary assets to unlock significant value.

“Over the past few years, we have focused on delivering technically differentiated, vertically integrated solutions to our semiconductor IDM and OEM customers. As well, NxEdge has made meaningful investments in our facilities’ infrastructure and capacity to support future growth.

“With Enpro, we will be able to fully capitalize on these investments and accelerate our momentum, and on a combined basis, deliver more comprehensive, differentiated solutions to meet our customers’ needs globally and offer expanded career opportunities for our colleagues.”

According to EnPro Industries, the deal marks a major next step in its multi-faceted strategy to place itself in secularly growing, high-margin industrial technology-related businesses having aftermarket exposure and revenue streams that are recurring.

After the closing of the deal, NxEdge will be a part of EnPro Industries’ Advanced Surface Technologies (AST) unit. The combined business will provide differentiated, integrated solutions with expanded customer relationships as well as a diversified geographic reach, said EnPro Industries.

Eric Vaillancourt — Interim President and CEO of EnPro Industries said: “This combination with NxEdge is an important step forward in our portfolio reshaping strategy as we continue our transformation toward unique industrial technology products and services in high-margin, high-growth markets.

“We have followed the significant progress achieved at NxEdge in recent years while evaluating acquisition opportunities against a rigorous set of criteria, looking for businesses with high cash flow and low capital intensity, as well as high aftermarket exposure, that operate in growing markets driven by secular tailwinds. In NxEdge, we have found a business that checks all of these boxes.”

The deal, which is subject to regulatory approvals and other limited closing conditions, is expected to be wrapped up by the end of this year.

  Boise, EnPro Industries, Eric Vaillancourt, Idaho, Jackson Chao, North Carolina, NxEdge, Trive Capital, USA