RTTNews | Jul 1, 2021 06:54AM EDT

06:53 Thursday, July 1, 2021 (RTTNews.com) - MKS Instruments, Inc. (MKSI), a provider of instruments, systems, subsystems and process control solutions, announced Thursday a definitive agreement to buy Atotech Limited (ATC), a process chemicals technology company. The acquisition is for $16.20 in cash and 0.0552 of a share of MKS stock for each Atotech share.

The equity value of the transaction is $5.1 billion and the enterprise value of the transaction is approximately $6.5 billion.

The company expects the acquisition to close by the fourth quarter of 2021. The transaction is expected to be accretive to adjusted net earnings per share within the first year.

The company expects the acquisition to result in pro forma annual revenue of $3.8 billion. MKS expects to realize $50 million in annualized cost synergies within 18 to 36 months.

The transaction is expected to be implemented by way of a scheme of arrangement of Atotech under the laws of Jersey. The deal has been unanimously approved by the MKS and Atotech boards of directors and is subject to Atotech shareholder approval, approval of the Royal Court of Jersey, regulatory approvals, and other customary closing conditions.

Carlyle and its affiliates, owner of 79% of outstanding Atotech common shares, have signed an irrevocable agreement to vote in favor of the transaction.

MKS said it intends to fund the cash portion of the transaction with a combination of available cash on hand and committed debt financing.

Following the deal closure, the combined company is expected to have pro forma net cash and investments of approximately $800 million and total debt outstanding of $5.3 billion.

Read the original article on RTTNews ( https://www.rttnews.com/3206365/mks-to-acquire-atotech-in-5-1-bln-cash-stock-deal-quick-facts.aspx)

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