Entegris Inc (NASDAQ:ENTG) Announces Acquisition Of ATMI And Its 4Q Results
Entegris Inc (NASDAQ:ENTG), the $1.58 billion market capped semiconductor and equipment manufacturer announced today that it has agreed to acquire the $1.08 billion market capped ATMI Inc (NASDAQ:ATMI) for a sale consideration of $1.15 billion. This translates to a purchase offer of $34 per share of the bought over firm by the Billericia, MA based Entegris Inc (NASDAQ:ENTG). The announcement has sent the share price of the target firm on a big bull run at the markets today.
Cash Rich ATMI Inc (NASDAQ:ATMI)
Today’s announcement by Entegris Inc (NASDAQ:ENTG) means that it is signalling its intent to grow inorganically in the speciality semiconductor space and has disclosed that it would be spending close to $850 million to buy out the firm, when it considers the cash that the bought out firm will bring on to its books. The smaller firm ATMI Inc (NASDAQ:ATMI) had recently sold one of its LifeSciences units and accumulated $170 million in cash.
On the successful completion of the buyout, Entegris Inc (NASDAQ:ENTG) hopes to save close to $30 million as it derives the benefits of synergy between the two firms and has committed to use its existing cash flow and additional debt to fund this leveraged buyout. The deal is slated to close in the second quarter of 2014.
Blow Out 4Q Results
In other related news, Entegris Inc (NASDAQ:ENTG) announced its fourth quarter and full year 2013 results before markets opened today. It reported a 13 percent increase in its quarterly revenue to hit $186.3 million and its net income came in at $23.1 million. Its operating margins came in at 14.1 percent for the quarter and managed to generate cash of $34.7 million from its quarter operations.
Entegris Inc (NASDAQ:ENTG) President and Chief Executive Officer Bertrand Loy has been quoted to have expressed his happiness at the strong quarter performance in following words, “We finished the year on a high note, as revenue and profits in the fourth quarter exceeded our expectations.”