Fuji to buy Arch Microelectronic Materials operation
The transaction is expected to close by the end of the year, subject to regulatory approvals and other customary closing conditions. The transaction includes the company's microelectronics manufacturing facilities and research and development facilities located in North America, Europe and Asia, and its 49% ownership of FUJIFILM Arch, the company's joint venture with Fuji Photo Film in Japan.
Arch will retain its 50% interest in Planar Solutions, a joint venture with Wacker Chemical for the production and sale of chemical mechanical planarisation (CMP) slurries, a microelectronics-dedicated manufacturing facility in Kentucky and its chemical management services business (CMS). The company will continue to supply certain products to the Microelectronic Materials operation from the Kentucky facility.
Arch Chemicals' chairman, president and CEO Michael Campbell explains: "This divestiture supports our strategy to focus our business portfolio and to redeploy resources to pursue growth opportunities in our key growth platform, Treatment Products." ArchÕs treatment products include industrial biocides used in the marine, construction, hygiene and lumber industries along with products for swimming pool sanitisation.
The Microelectronic Materials businesses to be sold had sales of some $135mn in 2003 and earnings before interest and taxes of $1.9mn (including allocation of corporate charges). The transaction sales price is subject to a final post-closing working capital adjustment. The estimated proceeds from the divestiture will be mainly used to pay down debt.
