Entegris to buy CMC Materials in $6.5bn deal

Entegris has agreed to buy CMC Materials - a supplier of advanced materials for the semiconductor industry - in a $6.5bn cash and stock deal.

Under the terms of the agreement, CMC shareholders will receive $133.00 in cash and 0.4506 shares of Entegris common stock for each share of their shares. The price represents a 35% premium to CMC’s closing price on Tuesday.

Once the deal completes, Entegris shareholders will own around 91% of the combined company, while CMC shareholders will own the rest.

Entegris president and chief executive officer Bertrand Loy said: "Acquiring CMC Materials will further differentiate our unit-driven platform and advance our ability to provide a broad range of process solutions for our customers, at a faster time-to-solution. The highly complementary combined portfolio creates the industry’s most comprehensive and innovative end-to-end electronic materials offering, as well as significantly expands our growing served market and content per wafer opportunity.

"In addition, we believe the acquisition will allow us to unlock significant growth through enhanced innovation, scale and execution. We also expect to utilize our significant cash flows to rapidly reduce leverage. We are confident that as a combined organisation, we will be poised to deliver significant value for our customers, colleagues and shareholders."

Entegris is a provider of products and systems that purify, protect, and transport critical materials used in the semiconductor device fabrication process.