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

Acquisition aimed at expanding Yageo's global footprint through 42 factories and 14 R&D centers worldwide

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Yageo Suzhou facility. (Yageo photo)

Yageo Suzhou facility. (Yageo photo)

TAIPEI (Taiwan News) — Taiwanese electronic component manufacturer Yageo (國巨) announced Tuesday (Nov. 12) that it will acquire its U.S. rival Kemet Corp. (NYSE: KEM) in a US$1.8 billion (NT$54.73 billion) all-cash deal aimed at expanding its global footprint through a combined 42 factories and 14 R&D centers worldwide.

Yageo, a leading supplier of mid- and low-end standard multilayered ceramic chip capacitors (MLCC), will offer US$27.20 (NT$827.10) per share, representing a premium of 26 percent to Kemet's volume-weighted average price for the last 30 trading days and 18 percent to Monday's closing price. The deal will include the assumption of net debt.

Established in 1919 and holding more than 1,600 patents, Kemet is a leading global supplier of high-end electronic components. The Florida-based company has 23 manufacturing facilities and approximately 14,000 employees worldwide. Its products serve a range of applications such as automotive electronics, aerospace, medical devices, smartphones, cloud and networking equipment, wireless communications, alternative energy, and 5G.

According to the companies, the integration will enable Yageo to become a one-stop provider of passive electronic components, such as polymer, tantalum, ceramic, film, and electrolytic capacitors, chip resistors, and circuit protection as well as sensors, actuators, and magnetics.

The transaction is expected to be completed in the second half of 2020. Kemet's common stock will no longer be listed on any public market and will instead become a wholly-owned subsidiary of Yageo.