Yageo completes acquisition of Kemet for $1.8 billion.

Yageo completes acquisition of Kemet for $1.8 billion.

For almost $1.8 billion, Taiwan’s Yageo Corp will buy its competitor Kemet Corp. This move will reportedly help Yageo expand worldwide. That’s an 18% premium over the stock’s closing price on November 11.

“The purchase will enhance our capacity to serve clients in high-end automotive, aerospace, industrial, medical, and telecom sectors,” said Yageo CEO Pierre Chen.

 

It will also be expanded throughout Europe, North America, and Asia, according to a joint statement. It is expected that the combined annual sales of the two companies would be over $3 Billion by 2020. The boards of both corporations have approved the merger, which is subject to regulatory clearance and usual closing conditions. Yageo claimed that the acquisition will be funded by a mix of committed funding and cash on hand.

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Yageo’s legal and financial consultants were Taiwan’s Tsar & Tsai Law Firm and Simpson Thacher & Bartlett LLP. Kemet also had legal and financial advice from Skadden, Arps, Slate, Meagher & Flom LLP and Goldman Sachs.

 

In the same vein, sources say US-based Flex plans to invest in India. Firm’s main goal is to increase exports from South Asia to $12 billion and improve industrial capabilities.

 

President Richard Hopkins met with Indian politicians, including Communications and IT Minister Ravi Shankar Prasad. To enhance output in India, they discussed “exploring new geographies”, one person said.

 

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