Tokyo-based FUJIFILM Holdings Corporation (FUJIY) on Wednesday said it has entered into a definitive agreement with CMC Materials LLC, a subsidiary of U.S.-based Entegris, Inc. (ENTG) to acquire the semiconductor high purity process chemicals business, CMC Materials KMG Corporation, for $700 million.
The acquisition cost may fluctuate as it is determined in consideration of the target business’s deposit balance, interest-bearing liabilities, operating capital and other factors as at the time of acquisition.
As part of the acquisition, Fujifilm would also add KMG’s Total Chemical Management business, which includes logistic services provided to customers in Southeast Asia and Europe.
The deal is expected to close by the end of 2023.
With the continued investment in Fujifilm’s electronic materials business, including this, and the expected growth of the semiconductor industry, Fujifilm expects to meet its financial goals for its electronic materials business of 250 billion yen in sales by fiscal 2026 and 400 billion yen in sales by fiscal 2030 – two years ahead of the original schedule. Furthermore, Fujifilm has revised the sales target for fiscal 2030 upward by 100 billion yen to 500 billion yen.
With the deal, Fujifilm would be able to offer its customers a broader lineup of electronic chemicals which are used to etch and clean silicon wafers in the production of semiconductors. The use of high purity process chemicals is anticipated to increase dramatically with the semiconductor industry growing at the annual rate of 11% and the increase in cleaning, etching and drying steps required for more advanced semiconductor fabrication.
Shares of FUJIFILM Holdings Corporation were last traded at $53.59, up $0.21 or 0.39 percent from the previous close.
Shares of Entegris were last traded at $78.24, down $1.21 or 1.52 percent from the previous close.
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