CMC Materials

The American company CMC Materials is engaged in the production and supply of consumables for manufacturers of semiconductors and pipeline companies.

History

2021: Entegris bought CMC Materials for $6.5 billion

In mid-December 2021, semiconductor component manufacturer Entegris bought CMC Materials in order to expand production amid an unprecedented global shortage of chips. The deal amounted to $6.5 billion.

Shareholders of CMC Materials will receive $133 in cash and 0.4506 in common shares of Entegris for each share they own. The deal will be funded by a combination of shares issued by CMC Materials, new debt and cash, the companies said in a joint statement. Entegris received fully leveraged funding from Morgan Stanley Senior Funding.

Entegris acquired CMC Materials for $6.5 billion

The addition of CMP CMC Materials lead portfolio will expand Entegris' suite of solutions by creating a comprehensive, electronic material offering. The complementarity of the company's technology platforms will allow Entegris to bring a wide range of innovative solutions to the market at a faster pace. These advanced materials and technology solutions for the most advanced production environments will help customers improve product performance and value.

Entegris President and Chief Executive Officer Bertrán Loy noted:

We believe that this acquisition will allow us to achieve significant growth through improved innovation, scaling and efficiency. We also expect to use our significant cash flows to quickly reduce the debt burden. We are confident that as a united organization, we are ready to bring significant benefits to our customers, colleagues and shareholders.[1]

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