said it plans to combine with
in a merger that unites two chemical companies to make critical components for the semiconductor industry.
Versum and Entegris announced Monday a stock-for-stock merger which Versum stockholders will receive 1
The combined company, which wants to sell products for purifying, protecting and transporting materials used in the manufacturing process in the semiconductor and other high-tech industries.
The company intends to retain the Entegris name and will be headquartered at Billerica, Mass., With a strong operational presence in Tempe, Arizona.
The Wall Street Journal
Entegris, with a market value of $ 4.4 billion, is no stranger to deal making. The company was founded in 1966 as Fluoroware. Following a merger 20 years ago, it regressed as Entegris and went public in 2000. Five years later, the company expanded through another merger, this time with Mykrolis Corp. In 2014, Entegris bought electronic-chemicals supplier ATMI Inc. It now has about 3,500 employees.
Versum, based in Tempe, Ariz., Was once part of industrial-gas maker Air Products & Chemicals Inc., before it was spun off in 2016.
Entegris Chief Executive Bertrand Loy wants to serve as CEO of the new company, with Entegris Chief Financial Officer Greg Graves as CFO. Mr. Loy became part of Entegris in 2005 as part of its merger with Mykrolis. Versum Materials general counsel Michael Valente wants to serve as general counsel of the combined company.
The development of the "Internet of Things" is providing semiconductor companies with new avenues of growth as more and more items-from cars to household products- become "smart." A wave of consolidation has swept the industry in recent years as chip makers seek to better position themselves in the changing landscape, and that could give their suppliers an incentive to gain through dealmaking.
Versum's sales rose 22% to $ 1.37 billion in the fiscal year ended Sept. 30, while its net income increased slightly to $ 204.7 million. At Entegris, sales in the nine months ended September rose 16% from the same period a year earlier to $ 1.15 billion. Net income jumped 41% to $ 160 million.
stock market volatility and political uncertainty. Earlier this month, pharmaceutical maker
agreed to buy
for $ 74 billion and financial-technology company
agreed to purchase
for $ 22 billion.
The chemicals industry has been busy consolidating in recent years, with Dow Chemical Co. and
combining and industrial gas companies
thus agreeing to come together.
Write to Dana Mattioli at firstname.lastname@example.org