ASM ANNOUNCES AGREEMENT TO ACQUIRE LPE, ENTERING HIGH-GROWTH SILICON CARBIDE EPITAXY EQUIPMENT BUSINESS
18 Juli 2022 - 08:00AM
ASM ANNOUNCES AGREEMENT TO ACQUIRE LPE, ENTERING HIGH-GROWTH
SILICON CARBIDE EPITAXY EQUIPMENT BUSINESS
Almere, The NetherlandsJuly 18, 2022, 8.00 a.m.
CET
ASM International N.V. (Euronext Amsterdam:
ASM) today announced that it reached an agreement under which ASM
will acquire all outstanding shares of LPE S.p.A., a manufacturer
of epitaxial reactors for silicon carbide (SiC) and silicon, based
in Italy.
Founded in 1972, LPE has exclusively focused on
designing, manufacturing and selling advanced epitaxy tools for
power applications. LPE is a recognized leader in SiC epitaxy and
has published many patents to date. LPE has a sizeable worldwide
installed base of SiC epitaxy tools dedicated to manufacturing
devices that address the rapidly growing electric vehicle market.
Revenue expectations for LPE in 2023 are greater than €100 million,
mainly driven by its SiC epitaxy equipment business.
Silicon carbide devices are experiencing strong
growth driven by the rapidly expanding market for electric
vehicles. The global auto industry is investing significantly in
chips made from silicon carbide. Because of its wide bandgap, SiC
is highly efficient at high voltages offering higher power
efficiency, increased power density resulting in reduced component
weight and size, as well as faster battery charging times.
Consequently, demand for SiC epitaxy equipment is forecasted (based
on ASM internal estimates) to grow at a CAGR in excess of 25% from
2021 to 2025.
“LPE with its strong culture of innovation and
traction with silicon carbide device makers, both for 150mm and
200mm substrates, is well positioned to serve the needs of global
automotive customers and their decarbonization drive,” said
Benjamin Loh, President and CEO of ASM. “Next to ASM’s expanding
position in advanced Epi applications for the logic/foundry and
memory markets, ASM is also a leader in silicon epitaxy solutions
for the power electronics, analog and wafer markets. LPE’s offering
of advanced SiC epitaxy tools complements ASM’s offering. I’m
confident that the combination of LPE and ASM will help our
customers accelerate their roadmaps towards next-generation more
efficient power electronics, which will enable the further
electrification of the automotive industry. The acquisition of LPE
adds another high-growth business to our portfolio of
differentiated deposition technologies and presents meaningful
opportunities to create value by leveraging our innovative epitaxy
technologies to further differentiate the product offering of LPE,
by building upon our significant customer base in the power
electronics market segment, and by utilizing our global field
service network to address customer needs.”
Franco Preti, CEO of LPE, said: “We believe the
acquisition by ASM will be attractive for LPE’s and ASM’s customers
as well as for employees. The acquisition will additionally enable
LPE to gain access to world-class R&D resources, as well as
leverage on ASM’s global operations, sales and customer support
network.”
Following the close of the transaction, LPE will
operate as a product unit under ASM’s Global Products organization.
LPE will continue to be based in Italy, with technology and
manufacturing centers in Milan and Catania. LPE is profitable and
is expected to contribute to net earnings immediately after
closing.
The transaction is subject to FDI and anti-trust
approval in a limited number of countries and other customary
closing conditions which are expected to be met by the long stop
date of November 10, 2022. Absent a closing by this date, the
parties will discuss in good faith on an exclusive basis for a
period of six months with the aim to still close the
transaction.
ASM will finance the transaction using a
combination of cash and shares. At closing the purchase price will
be paid with €283.25 million in cash, and with 631,154 ASM shares.
At the date of signing, the payment represents an enterprise value
of €425 million on a cash and debt free basis. An additional amount
of up to €100 million will be paid by way of an earn out based on
certain performance metrics over a two-year period after the
closing of the transaction. The shares will be a combination of
treasury shares (580,000) and a limited number of newly issued ASM
shares (51,154). The earn outs are to be paid out exclusively in
cash. The cash amounts will be financed from ASM’s net cash
balance.
ASM will further discuss the acquisition in its
upcoming Q2 2022 earnings call on July 21, 2022.
About ASM International
ASM International N.V., headquartered in Almere,
the Netherlands, and its subsidiaries design and manufacture
equipment and process solutions to produce semiconductor devices
for wafer processing, and have facilities in the United States,
Europe, and Asia. ASM International's common stock trades on the
Euronext Amsterdam Stock Exchange (symbol ASM). For more
information, visit ASM's website at www.asm.com
Cautionary Note Regarding Forward-Looking
Statements: All matters discussed in this press release, except for
any historical data, are forward-looking statements.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements. These include, but are not limited to,
economic conditions and trends in the semiconductor industry
generally and the timing of the industry cycles specifically,
currency fluctuations, corporate transactions, financing and
liquidity matters, the success of restructurings, the timing of
significant orders, market acceptance of new products, competitive
factors, litigation involving intellectual property, shareholders
or other issues, commercial and economic disruption due to natural
disasters, terrorist activity, armed conflict or political
instability, changes in import/export regulations, epidemics and
other risks indicated in the Company's reports and financial
statements. The Company assumes no obligation nor intends to update
or revise any forward-looking statements to reflect future
developments or circumstances.
This press release contains inside information within the
meaning of Article 7(1) of the EU Market Abuse Regulation.
CONTACT
Investor and media contact:Victor BareñoT: +31 88 100
8500 E: investor.relations@asm.com
- 20220718 ASM ANNOUNCES AGREEMENT TO ACQUIRE LPE, ENTERING
HIGH-GROWTH SILICON CARBIDE EPITAXY EQUIPMENT BUSINESS
ASM International NV (EU:ASM)
Historical Stock Chart
Von Feb 2024 bis Mär 2024
ASM International NV (EU:ASM)
Historical Stock Chart
Von Mär 2023 bis Mär 2024