Chemicals group Entegris and electronic materials company Versum Materials have agreed to combine in a $9bn merger of equals to create a “premier specialty materials company” for the semiconductor and other high-tech industries.
The combined company will retain the Entegris name and will be headquartered in Billerica, Massachusetts, maintaining a strong operational presence in Tempe, Arizona.
Upon closing the transaction, Entegris CEO Bertrand Loy will service as CEO, Entregis Chief Financial Officer (CFO) Greg Graves will serve as CFO and Versum Materials General Counsel Michael Valente will serve as General Counsel of the combined company, supported by a highly experienced and proven leadership team that reflects the strengths and capabilities of both companies.
Entegris President and CEO, Bertrand Loy 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.”
Versum Materials President and CEO, Guillermo Novo echoed, “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.”
Benefits of the merger
According to the two companies, the merger will enhance product breadth and depth, creating “the world’s first comprehensive and effective end-to-end materials solutions provider across the entire semiconductor manufacturing process”. The combined company is expected to have a full suite of diversified product offerings including advanced materials, specialty gases, microcontamination control, advanced materials handling and delivery systems and services.
The transaction is expected to close in the second half of 2019, subject to the satisfaction of customary closing conditions, including receipt of US and international regulatory approvals, and approval by the stockholders of each company.