The acquisition is expected to allow Enpro to capitalise on the market trends that show the expansion of the use of semiconductors from consumer and auto electronics into numerous business sectors
the combined company will benefit from NxEdge’s facilities in the US. (Credit: Cristian Ibarra from Pixabay)
Industrial technology company EnPro Industries has signed an agreement to acquire semiconductor component maker NxEdge from Trive Capital for $850m in cash.
Based in Boise, Idaho, NxEdge is an advanced manufacturing, cleaning, coating, and refurbishment company focused on the semiconductor value chain.
With six main facilities located in Idaho and California, the company serves customers across the semiconductor supply chain, including major global integrated device manufacturers (IDM) and original equipment manufacturers (OEM).
NxEdge is expected to generate nearly $190m in revenue and an adjusted EBITDA of $70m for 2021.
The acquisition is expected to enable EnPro to expand its existing semiconductor businesses with differentiated coatings capabilities.
Following the completion of the transaction, NxEdge will become part of Enpro’s Advanced Surface Technologies (AST) segment.
EnPro Industries interim president and CEO Eric Vaillancourt said: “This combination with NxEdge is an important step forward in our portfolio reshaping strategy as we continue our transformation toward unique industrial technology products and services in high-margin, high-growth markets.
“We have followed the significant progress achieved at NxEdge in recent years while evaluating acquisition opportunities against a rigorous set of criteria, looking for businesses with high cash flow and low capital intensity, as well as high aftermarket exposure, that operate in growing markets driven by secular tailwinds. In NxEdge, we have found a business that checks all of these boxes.”
The acquisition is expected to allow Enpro to capitalise on the market trends that show the expansion of the use of semiconductors from consumer and auto electronics into numerous business sectors.
With a range of coating materials and technically advanced coating capabilities in the semiconductor market, NxEdge is also anticipated to enable Enpro to gain a strong competitive position.
In addition, the combined company will benefit from NxEdge’s facilities in the US by capitalising on ongoing IDM expansion and semiconductor supply chain development domestically.
The transaction is expected to be completed by the end of this year, subject to certain closing conditions, including regulatory approvals.
GCA Advisors is serving as a financial advisor to Enpro in connection with the transaction, while Robinson Bradshaw is acting as its legal counsel.