Merck, an American multinational science and technology company, has acquired M Chemicals, a chemical business of South Korea-based Mecaro, for up to €110 million.

The transaction value constitutes an upfront cash payment of €75 million and payments of up to €35 million on achieving certain milestones.

The acquisition forms part of the “Level Up” growth program of Merck’s electronics business sector with over €3 billion investments from 2021 through 2025 in innovation and capacities.

The transaction aligns with a key segment of Merck’s semiconductor solutions portfolio and expands both its regional and global capabilities.

The acquisition is anticipated to further drive innovation in one of Merck’s “Big 3” growth engines, semiconductor solutions.

M Chemicals, which was recently incorporated by Mecaro to operate its chemical business, develops and manufactures precursors used in thin film deposition.

Surésh Rajaraman — Merck Senior Vice President and Thin Film Solutions Business Field Head said: “We’re delighted to announce our recent closing of the acquisition and continue expanding our regional capabilities in Korea, as well as our overall global capacity.

“The acquisition of M Chemicals Inc. is another milestone in the expansion of our Electronics business and in particular Semiconductor Solutions, one of our “Big 3” growth engines, through targeted smaller to medium-sized acquisitions with high impact.”

Merck will acquire nearly 100 new employees and production and R&D facility in Korea as part of the acquisition.

In August 2022, Merck announced an agreement with Mecaro to acquire M Chemicals.

Founded in 1668, Merck is a specialist in electronics, life science, and healthcare sectors.

Mecaro manufactures heater blocks and chemical precursors for semiconductors and markets its products throughout South Korea.

  M Chemicals, Mecaro, Merck, semiconductors, South Korea, Surésh Rajaraman