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Entegris to exit three product markets

Posted: 14 Sep 2005 ?? ?Print Version ?Bookmark and Share

Keywords:semiconductor production equipment?

Looking to cut costs amid its acquisition of Mykrolis Corp., fab-automation equipment vendor Entegris Inc. said that it will divest three of its smaller product lines. This includes gas delivery components used in semiconductor production equipment, stainless steel clean-in-place equipment for life science applications, and tape-and-reel systems used in electronics manufacturing.

The product lines to be divested have combined revenue of about $50 million, or 8 percent of total sales, and are not currently profitable. Entegris said it intends to treat these businesses, which employ a total of about 350 people, or 13 percent of the current workforce, as discontinued operations in its financial reporting.

"Our decision to exit these product lines will allow us to focus on areas with the greatest potential for profit growth and value creation," said Gideon Argov, president and chief executive, in a statement.

The divestitures follow a comprehensive review of all the company's operations in connection with its recently completed merger with Mykrolis. In March, semiconductor manufacturing equipment and materials companies Entegris (Chaska, Minn.) and Mykrolis (Billerica, Mass.) agreed to merge in a transaction that is expected to create a company valued at $1.3 billion. The combined company will be known as Entegris (see March 21 story).

Entegris also reported that the integration process following the merger is proceeding smoothly and raised its expected annualized cost savings from the merger to approximately $20 million from the original estimate of $15 million. The company expects these cost synergies to be fully in place by the middle of calendar year 2006.

- EE Times

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