MKS Instruments to buy Atotech in $6.5bn deal
ATOTECH
$22.71
11:00 08/03/24
MKS Instruments has agreed to buy specialty chemicals company Atotech in a $6.5bn deal.
Mks Instruments Inc.
$108.17
12:00 19/04/24
MKS, which makes semiconductor equipment, will pay $16.20 in cash and 0.0552 of a share per Atotech share. It said the deal will result in pro forma annual revenue of $3.8bn and is expected to be accretive to MKS’ non-GAAP net earnings per share within the first year.
MKS also said it expects to realise $50m in annualized cost synergies within 18 to 36 months.
The company’s president and chief executive officer, John T.C. Lee, said: "Together, MKS and Atotech will be uniquely positioned to drive faster, better solutions and innovations for customers in advanced electronics.
"We anticipate the addition of Atotech will position MKS to enable roadmaps for future generations of advanced electronics devices. The acquisition of Atotech also provides MKS with a recurring revenue stream from a consumables portfolio for leading-edge devices, with meaningful scale and potential on which to build."
Atotech CEO Geoff Wild said: "The combination of Atotech’s expertise in electroplating and chemistry and MKS’ strengths in lasers, laser systems, optics and motion will enable innovative and ground-breaking solutions for customers in the areas of materials processing and complex applications. This transaction is an excellent outcome for our shareholders, and we believe it will provide immediate value and the opportunity to benefit from the upside potential of the combined company."