- Entegris aims to maintain focus on core capabilities and strategic objectives while streamlining its business
- Fujifilm has entered into a definitive agreement to acquire the semiconductor high-purity process chemicals (HPPC) business, CMC Materials KMG Corporation (KMG), from the US-based Entegris
Entegris, a leading supplier of advanced materials and process solutions for the semiconductor and other high-technology industries, recently announced that Fujifilm is going to acquire Entegris’ Electronic Chemicals business for $700 million. Under this business, the company supplies high-purity process chemicals (HPPC), which are utilized in the semiconductor manufacturing process to clean, etch and dry the wafer during multiple stages of the chip fabrication process. The company expects to use the $700 million of proceeds from the sale to accelerate debt paydown.
Apart from the company’s business and balance sheet optimization, it believes that the transaction ensures resources dedicated to meeting the growing demand for high-purity chemicals for U.S. semiconductor production. The company also plans to enhance its ‘Premier Asset Footprint’ with targeted investments.
As part of Entegris’ Advanced Planarization Solutions (APS) division, the Electronic Chemicals business was acquired with the acquisition of CMC Materials in July 2022. In 2022, Entegris’ Electronic Chemicals business had pro-forma sales of approximately $360 million.
The CEO and president of Entegris, Bertrand Loy commented, “The sale of the Electronic Chemicals business is another important step as we continue to focus on assets that we believe have the greatest long-term strategic value for Entegris. In addition, the proceeds from this transaction will significantly contribute to further debt paydown.”
“Fujifilm is a great fit for the Electronic Chemicals business, and importantly, customers of this business will continue to experience the level of quality and service they have come to know and expect for advanced node requirements. With Fujifilm’s proven track record of investments, quality focus and innovation in the semiconductor industry, broad complementary lineup, premier asset footprint, strong management and related capabilities and relationships, the Electronic Chemicals business will be well-positioned to continue to supply the growing market demand for these materials in North America, Europe, Asia, and beyond,” said Mr Loy.
Corporate VP & GM of the Electronic Materials Division, FUJIFILM Corporation, Tetsuya Iwasaki remarked, “The combined resources of the two global businesses with a strong talent base and complementary technology platforms will foster the development of next-generation HPPC products to further enhance semiconductor performance. We’re excited about what the future holds, and we look forward to welcoming the KMG team to Fujifilm. Together we will continue our focused commitment to providing innovative and comprehensive solutions to our customers.”
While the transaction is expected to close by the year-end, it is subject to receipt of required regulatory approvals and other customary closing conditions.
Entegris is a leading supplier of advanced materials and process solutions for semiconductors and other high-tech industries. With around 9,000 employees, it has manufacturing, customer service and/or research facilities in the US, Canada, China, France, Germany, Israel, Italy, Japan, Malaysia, Singapore, South Korea, Taiwan, and the UK.
FUJIFILM Corporation, Tokyo, is an operating company of FUJIFILM Holdings Corporation along with FUJIFILM Business Innovation Corp. FUJIFILM Holdings claims to leverage its knowledge and proprietary core technologies to deliver ‘Value from Innovation’ in products and services in the business segments of healthcare, materials, business innovation, and imaging.
