THE REUTERS – MKS Instruments Inc, a supplier of semiconductor equipment, announced on Thursday that it will buy specialized chemicals company Atotech Ltd for around US$5.1 billion to expand its chip production capabilities. According to Reuters calculations, the cash-and-stock deal comprises US$16.20 in cash and 0.0552 of MKS common stock for each Atotech share, for a total value of roughly US$26 per share.
The offer marks a 10% premium over Atotech’s closing price on June 10, when Reuters reported that MKS had made an acquisition offer to the company.
The agreement comes at a time when the chip industry is experiencing a global scarcity of semiconductors, which has caused certain auto production lines to shut down and has had an impact on other industries, including consumer electronics.
In February, Atotech, financed by buyout company Carlyle Group Inc, debuted on the New York Stock Exchange. Chemicals and equipment for printed circuit boards and semiconductors are produced by the company, which are utilized in cellphones, appliances, and heavy machinery. MKS’ chip manufacturing products will be expanded with the purchase of Atotech’s plating chemicals, which is slated to close in the fourth quarter of this year.
MKS, which has a market valuation of roughly US$10 billion, made a US$6 billion offer for laser manufacturer Coherent Inc in February, but lost out to II-VI Inc’s bid.
MKS, situated in Andover, Massachusetts, was up about 1% to US$179.50 in premarket trade on Thursday, while Atotech was down slightly.
MKS’ financial counsel was Perella Weinberg Partners, while Atotech’s financial adviser was Credit Suisse.
(Akanksha Rana in Bengaluru contributed reporting; Shounak Dasgupta edited the piece.)/n
