Entegris and Versum merge to create a $9 billion specialty materials company
Entegris Inc. and Versum Materials Inc. confirmed Monday a “merger of equals” to form a company with a combined value of about $9 billion, with Entegris shareholders owning a 52.5% stake. Under terms of the deal, shareholders of specialty materials company Versum will receive 1.12 shares of Entegris, a specialty chemicals and materials company, for each Versum share they own. Based on Friday’s stock closing prices, that values Versum shares at $35.08 each, which is an 11% premium, and implies a market capitalization of about $3.83 billion for Versum. The Wall Street Journal reported over the weekend that the companies were in advanced talks to combine. The combined company will retail the Entergris and be headquartered in Massachusetts. The companies expect to generate move than $75 million in annual cost synergies within 12 months after the close, which is expected to occur in the second half of 2019. Over the past 12 months, Entegris shares have lost 9.2% and Versum’s stock has declined 17%, while the S&P 500 has lost 7.2%.
Source : MTV
