Chip materials supplier Entegris to buy rival ATMI for $1.15 bn

Entegris Inc, a supplier of semiconductor materials, yesterday said that it would buy rival ATMI Inc, for $1.15 billion.

Entegris will pay $34 in cash per share, a premium of 26.3 per cent over ATMI's closing price on 3 February.

Entegris expects to fund the deal through a combination of cash-on-hand and debt financing.

The transaction is expected to generate annualised cost savings of about $30 million, the companies said in a statement.

Connecticut-based ATMI had in November 2013 hired Barclays Capital to explore strategic options.

The merger will bring together two key suppliers in the semiconductor industry to create a technology leader in advanced process materials, contamination control and wafer handling.

Entegris said that by leveraging ATMI's market-leading critical products, global infrastructure and expertise in key processes, it will have a stronger platform to serve the demanding technology needs of the world's largest semiconductor makers and other electronics companies. 

Bertrand Loy, president and CEO of Entegris said, ''ATMI's microelectronics business is an excellent fit with Entegris and provides us with a premium portfolio of products that will enable us to create enhanced value. Together, we will be uniquely positioned with innovative yield-enhancing solutions to address the increasing complexity and cost of new semiconductor processes.''

Doug Neugold, president and CEO of ATMI, said, ''We are pleased to merge our microelectronics business into Entegris. Entegris' global platform and complementary products represents a great opportunity for ATMI stakeholders, including our shareholders, who will receive an immediate premium for their investment.''

Based in Massachusetts, Entegris is a provider of critical products and materials used in advanced high-technology manufacturing.

It provides wafer carriers and shippers to protect semiconductor wafers and solar cells from contamination and breakage; filtration products that purify process gases and fluids, as well as the ambient environment; liquid systems and components that dispense, control or transport process fluids.

It also provides specialty coatings that provide high-purity surfaces for wear-resistance, corrosion protection and smoothness; premium graphite and silicon carbide for high-performance applications; and shippers and trays for protecting and transporting disk drive components.