Reuters logo
Entegris to buy fellow chip industry supplier ATMI for $1.15 billion
February 4, 2014 / 12:55 PM / 4 years ago

Entegris to buy fellow chip industry supplier ATMI for $1.15 billion

(Reuters) - Entegris Inc (ENTG.O) said it would buy ATMI Inc ATMI.O for $1.15 billion, bringing together two key suppliers of high-purity materials and packaging systems used in the manufacture of semiconductors.

Entegris’s offer of $34 per share represents a premium of 26 percent to ATMI’s closing price of $26.93 on the Nasdaq on Monday. Entregis’s shares rose 15 percent to $11.85 in early trading, while ATMI’s shares were trading at $33.76.

The combination will create a leader in advanced process materials, contamination control and wafer handling, the companies said in a statement.

The deal is expected to generate annualized cost savings of about $30 million, the companies said.

Entegris said it would fund the all-cash deal through a combination of cash-on-hand and debt financing.

Entegris also reported better-than expected fourth-quarter results on Tuesday, helped by demand for its liquid and gas filtration and purification technology.

Net income more than doubled to $23.1 million, or 17 cents per share, from $11.3 million, or 8 cents per share, a year earlier, while revenue rose 11 percent to $186.3 million.

The company earned 18 cents per share on an adjusted basis.

Analysts on average had expected earnings of 13 cents per share on revenue of $170.6 million, according to Thomson Reuters


ATMI said its income from continuing operations more than halved to $6.4 million, or 19 cents per share, in the quarter ended December 31.

ATMI, which said in November that it was exploring strategic options, sold its LifeSciences business to Pall Corp PLL.N for $185 million in December.

Reporting By Sampad Patnaik in Bangalore; Editing by Ted Kerr

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below