Entegris and Mykrolis in “merger of equals” deal
The combined 2,700-strong company, which will trade as Entegris, will have trailing annual sales of more than $650 million, making it a major player in the purification, protection and transport of materials used in the semiconductor and microelectronics sectors. The company will have offices across North America, Europe and Asia, with a particularly strong presence in Japan and Taiwan.
Under the terms of the deal, which was unanimously approved by both companies’ boards, Entegris and Mykrolis will merge in a stock-for-stock exchange.
Mykrolis shareholders will receive 1.39 shares of Entegris common stock for every share of Mykrolis common stock they hold. On completion of the transaction, due in the third quarter of this year, Entegris shareholders will own around 56% of the new firm, Mykrolis shareholders owning the remaining 44%.
Mykrolis chief executive officer Gideon Argov will become CEO of the new company, while Entegris chief executive officer James Dauwalter will serve as nonexecutive chairman. Jean-Marc Pandraud, currently president and COO of Mykrolis, will be the company’s chief operations officer.
"This merger of equals offers considerable strategic, operating, technological and financial synergies. For example, more than 60% of the sales of the combined company will come from consumable products, which should enhance our ability to navigate through industry and economic cycles," said Argov.
"In a period of industry consolidation, this transaction will establish the new Entegris as a significant supplier to the semiconductor device industry. We will be well-positioned to better serve our customers, grow our business and build further value for our shareholders."
Although both firm’s have approved the deal, analysts have speculated that the merger could be scuppered by an offer for Mykrolis from a third party.