Taiwan's Yageo to buy Kemet in US$1.8 bln deal

November 12, 2019 08:31
A Taiwanese electronic component manufacturer is expanding its global footprint with the acquisition of a US rival. Photo: YouTube

Yageo Corp, the Taiwan-based electronic component manufacturer, has announced plans to acquire US rival Kemet Corp in a deal worth US$1.8 billion.

Yageo will offer US$27.20 per Kemet share, representing an 18 percent premium to Monday’s closing share price, Reuters reports.

“The integration will enhance our ability to serve customers in consumer electronics as well as in the high-end automotive, industrial, aerospace, telecom and medical sectors”, Yageo CEO Pierre Chen said in a statement.

Yageo’s global footprint would increase with additional operations in North America, Europe and Asia.

The deal is expected to close in the second half of 2020 and would result in combined annual revenues of about US$3 billion, according to a joint statement.

Yageo said it intends to fund the transaction with a combination of cash on hand and committed financing.

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