Home»News»Kemet acquires Niotan

Kemet acquires Niotan

Pinterest Google+

Kemet Corporation has signed an agreement to acquire all of the outstanding shares of Niotan Incorporated from an affiliate of Denham Capital Management LP. Niotan has been a significant supplier of tantalum powder to Kemet for several years.”This acquisition is in keeping with our announced strategic direction to vertically integrate operations and to better control supply sources as well as to contain our cost structure. Acquiring Niotan is a significant step in securing and stabilizing our tantalum powder resources. Additionally, we recently announced a comprehensive plan for sourcing conflict free tantalum ore from the Democratic Republic of Congo (DRC). We will continue to purchase a portion of our tantalum powder needs from our existing supply base. Together, these actions have put in place a supply chain that provides customers with confidence in the long-term viability of our tantalum capacitance solutions and will allow for faster to market development of specialty powders from Kemet,” said Per Loof, Chief Executive Officer of Kemet. Kemet will pay an initial purchase price of USD 30 million at the closing of the transaction and additional deferred payments of USD 45 million over a thirty month period after the closing. Kemet will also be required to make quarterly royalty payments for tantalum powder produced by Niotan after the closing of the transaction, in an aggregate amount equal to USD 10,000,000 by December 31, 2014.The transaction is subject to customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Act, and is expected to close in March 2012.

Electronicsfeed.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. For a full list of the affiliate programs we utilize to help serve unique, ad-free content, take a look at our Advertising Disclosure statement.
Previous post

Johnson Controls Reports Record Sales and Earnings

Next post

CMOS image sensors continue march to dominance over CCDs