DuPont has announced that it has signed a definitive agreement to acquire ChemFirst Inc in a cash transaction valued at $408 million.
According to DuPont, the acquisition is expected to be about $.01 per share dilutive in the first 12 months, due to integration costs, and accretive thereafter.
ChemFirst is a global supplier of electronic chemicals and materials to the semiconductor industry and specialty intermediates for polyurethane and other applications. The company had 2001 sales of $278 million, and has primary manufacturing facilities in Scotland as well as Japan and the US.
‘The acquisition of ChemFirst provides a high-growth electronic technologies opportunity, while the chemical intermediates will add attractive earnings from day one,’ said Dave Miller, vice president and general manager – DuPont Electronic Technologies.
‘It expands the DuPont presence in semiconductor fabrication materials and provides a platform for growth,’ added Miller. ‘We intend to become a leading supplier in that industry through new product offerings and technology.’
ChemFirst’s electronic materials business segments will become a part of DuPont Electronic Technologies whilst ChemFirst’s chemical intermediates unit, First Chemical Corp, will become a part of DuPont Chemical Solutions Enterprise.
The agreement must be approved by ChemFirst shareholders and is subject to regulatory approval. J. Kelley Williams, CEO and chairman of ChemFirst, has agreed to vote his shares representing more than 8 percent of ChemFirst’s outstanding shares in favour of the acquisition. The acquisition is expected to be completed in the fourth quarter of 2002.