By Sam Boughedda
Investing.com -- CMC Materials shares jumped 27% Wednesday on news the company will be acquired by advanced materials supplier Entegris (NASDAQ:ENTG) in a deal worth around $6.5 billion
Entegris shares fell 5%.
The deal is cash plus stock. CMC Materials shareholders will receive $133 in cash and 0.4506 shares of Entegris common stock for each CMC Materials share they own. This represents a 35% premium over CMC's closing price on Dec. 14 and a 38% premium to the 10-day volume-weighted average share price.
Bertrand Loy, president and CEO of Entegris, 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."
Once the deal is completed, which is expected to be in the second half of 2022, Entegris shareholders will own approximately 91% of the combined company, with CMC Materials shareholders owning around 9%.