MKS Buys Germany’s Atotech

07.07.2021 - US semiconductor equipment maker MKS Instruments is buying German specialty chemicals and equipment company Atotech for an enterprise value of $6.5 billion in a combined cash-and-stock deal. The acquisition is expected to close by the fourth quarter of 2021. MKS will fund the cash portion of the transaction with funds to hand and debt financing.

Both companies’ boards have unanimously approved the merger, which is subject to approval by Atotech shareholders. MKS said Atotech’s majority owner, private equity firm The Carlyle Group which holds 79% of common stock, has signed an irrevocable agreement to vote in favor of the deal. In February, Carlyle held an initial public offering for the company that raised more than $497 million.

MKS and Atotech, a leader in advanced electroplating solutions, have complementary offerings for customers in key advanced electronic markets.  “By combining leading capabilities in lasers, optics, motion and process chemistry, the combined company will optimize the PCB Interconnect, a significant enabling point of next-generation advanced electronics that represents the next frontier for miniaturization and complexity,” said MKS president and CEO John Lee.

“We anticipate the addition of Atotech will position MKS to enable roadmaps for future generations of advanced electronics devices,” Lee added, noting that the acquisition 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.”

The combined company will have pro-forma annual revenues of $3.8 billion and MKS expects to realize $50 million in annualized cost synergies within 18 to 36 months.

Author: Elaine Burridge, Freelance Journalist