MKS Instruments Makes a Move to Acquire Atotech

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Atotech had closed its initial public offering of 29,268,000 shares of common stock at $17.00 per share in February 2021

MKS Instruments, a semiconductor equipment maker, has approached Atotech Limited, a specialty chemicals company, with an acquisition offer. A report by Reuters noted that the potential combination would expand MKS’s offerings in chip manufacturing through the addition of Atotech’s plating chemicals.

It is to be noted here that Atotech has a market value of around $4.7 billion as of today. The company was floated on the IPO juts a few months earlier by Carlyle Group Inc. However, it is not sure whether Atotech will entertain the offer made by MKS Instruments or not.

Atotech had reported first quarter revenue of $353 million. These figures represent an increase of 25 per cent over the prior year period, including chemistry organic revenue growth of 13 per cent. It had also reported a net loss of $72 million, primarily reflecting one-time costs associated with the Company’s recent refinancing.

The company had also formally inaugurated the Atotech Development Center in Manesar, India. Sarah Spray, who was appointed as the global head of Investor Relations & Communication in March 2021 might have a key role in making sure whether the deal materialises or not.

MKS Instruments, on the other hand, has recently acquired Photon Control Inc. for CAD$3.60 per share, in an all-cash transaction valued at approximately CAD$387 million, with an estimated enterprise value of CAD$343 million.

“We anticipate the acquisition will further advance the MKS strategy to enhance our Surround the Chamber® offering by adding optical sensors for temperature control for critical etch and deposition applications in semiconductor wafer fabrication. In addition, Photon Control is a strong strategic fit with similar culture and vision to MKS,” MKS President and CEO John T.C. Lee had said earlier.

Atotech had closed its initial public offering of 29,268,000 shares of common stock at $17.00 per share in February 2021. the gross proceeds to Atotech from the offering were approximately $497.6 million, before deducting the underwriting discount and offering expenses.

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