Entegris to acquire rival chemicals company Versum Materials in $4bn deal

Entegris acquisition of Versum : US chemicals manufacturer Entegris has agreed to acquire Arizona-based chemicals company Versum Materials in an all-stock deal worth around $4 billion.

The Entegris Versum merger is expected to create a $9 billion or so worth premier specialty materials company that will serve the semiconductor and other high-tech industries.

Versum was created through the spin-off of Air Products & Chemicals’ Electronic Materials division in October 2016. The chemicals company serves the semiconductor industry with supply of CMP slurries, ultra-thin dielectric and metal film precursors, etching products, formulated cleans and delivery equipment.

On the other hand, Entegris, which is based in Massachusetts, manufactures products and systems that purify, protect, and transport critical materials required for the semiconductor device fabrication process.

Entegris acquisition of Versum. Image courtesy of Keith Syvinski/Freeimages.com

Commenting on Entegris acquisition of Versum, Bertrand Loy – President and CEO of Entegris, said: “The combined company will be ideally positioned to more effectively help our customers achieve higher yields and new levels of performance and reliability, and together, we will be well positioned to take advantage of long-term secular semiconductor growth, and to tackle new industry process challenges.

“I have great respect for the Versum Materials team and look forward to joining forces as we embark on this next chapter and create new value for our stockholders, employees and customers.”

As per the terms of Entegris acquisition of Versum, shareholders of the latter company will be issued 1.120 shares of Entegris for each existing shares they hold in Versum.

Following the completion of the Entegris Versum merger, existing shareholders of Entegris will hold 52.5% in the combined company, while shareholders of Versum will own the remaining 47.5%.

The combined company will keep the Entegris name and will be based in Billerica, Massachusetts with a strong operational footprint in Tempe, Arizona.

Guillermo Novo – President and CEO of Versum Materials, commenting on Entegris acquisition of Versum, said: “We could not ask for a better partner in Entegris. This merger will create greater benefits and growth opportunities than either company could have achieved on its own. It dramatically accelerates our goal of portfolio diversification – creating an end-to-end materials solutions provider across the entire semiconductor manufacturing process.

“With enhanced global scale and world class technical expertise, we’ll be poised to drive further innovation and support investments across our technology, infrastructure, and additional capabilities – enabling us both to better serve our customers and provide expanded opportunities for our employees.”

Entegris acquisition of Versum is anticipated to be wrapped up in the second half of this year should it satisfy customary closing conditions such as receipt of US and international regulatory approvals, and approval by shareholders of each company.