Yageo spent US$1.8 billion to acquire US-based KEMET, and the transaction will be completed in the s
Yageo spent US$1.8 billion to acquire US-based KEMET, and the transaction will be completed in the second half of next year.
According to foreign media reports, Yageo agreed to acquire KEMET, a US passive device manufacturer, for $1.8 billion in cash. Through this transaction, it will expand the product portfolio of Yageo.
Passive component Yageo applied for suspension after the 11th, and suspend trading on the 12th to start cross-border mergers and acquisitions.
According to Reuters, Chinese Taiwanese technology company Yageo Corp said on Monday that it will acquire rival electronic component manufacturer Kemet Corp for $1.8 billion to expand its global reach. Yageo will be offered at Kemet's $27.20 per share, a 18% premium to Monday's closing price
Kemet officially confirmed this, Kemet Chief Executive William M. Lowe Jr. said that he is pleased to reach this agreement with Yageo, which is in the best interest of shareholders, customers and employees.
According to public information, Kemet Corp is an American capacitor manufacturer such as tantalum, aluminum, multilayer ceramics, thin films, polymer electrolysis and supercapacitors. Kemet also manufactures a variety of other passive electronic components such as AC line filters, EMI cores and filters, flexure suppressors, electromechanical devices (relays), metal composite inductors, ferrite products, and transformer/magnetic devices.
Kemet has technical advantages in the production process and basic materials of tantalum capacitors. Its accumulation of high-capacity and automotive technology is urgently needed by the national giant. Chen Taiming, CEO of Yageo, said: "Integration will enhance our ability to serve our customers in the consumer electronics arena as well as in the high-end automotive, industrial, aerospace, telecommunications and medical sectors."
The transaction has now been approved by the board of directors of both parties, and the two companies said in a joint statement that new operations in North America, Europe and Asia will expand the global business landscape of the company.
Yageo said it will raise funds for the deal in cash and financing, and said the deal will be completed in the second half of 2020, and the combined annual revenue will reach about $3 billion.
It is worth mentioning that Yageo has gained competitiveness through multiple acquisitions in recent years. In April and May 2018, it acquired Brightking Electronics and US Pulse Electronics for RMB 1.56 billion and RMB 5.028 billion respectively.
