Kulicke & Soffa Industries, Inc. (NASDAQ:KLIC) ( “ K&S ” ) announced that the company has completed the previously announced sale of its wire business unit to W.C. Heraeus GmbH ( “ Heraeus ” ), a leading precious metals and technology group. Heraeus acquired the wire business assets for approximately $165 million, including estimated working capital adjustments. The final consideration will be subject to additional, post-closing working capital adjustments.
Concurrent with the close of the sale, K&S and Heraeus also entered into a development and engineering services agreement, under which the two parties will provide reciprocal base engineering support and will consider joint research and development initiatives aimed at customers ‘ future packaging needs.
Commenting on the announcement, Scott Kulicke, Chairman and Chief Executive Officer of K&S, said, “ We believe this transaction will provide us with the financial resources and technical focus necessary to pursue attractive growth opportunities on the equipment side of our business. As we have stated previously, the working capital requirements of the wire business have become significant in recent years and we believe can no longer be justified. The wire business fits Heraeus ‘ core competencies well, especially in global precious metals trading and related services like refining. Heraeus has the necessary resources to support the continued growth of this business, and to exploit the advanced wire products like MaxSoft ™ and Relmax ™ we have recently developed. We look forward to working closely with Heraeus through the development and engineering arrangement we have formed, which will allow us to cooperatively pursue the technical opportunities that exist between these two businesses going forward.
“ We thank our wire business employees for their many contributions and dedicated service to the Company. Our wire business has always been characterized by a reputation for innovation and by the excellent customer relationships our employees have formed. ”
Maurice Carson, Senior Vice President and Chief Financial Officer of K&S, added, “ We believe that this transaction strengthens our balance sheet, and together with our pending acquisition of Orthodyne will deliver value to our shareholders. Coupled with last year ‘ s acquisition of Alphasem, we believe we have enhanced our already strong position in the semiconductor assembly business, along with our ability to respond to customer needs as industry conditions improve. ”
About Heraeus Group
Heraeus, the precious metals and technology group headquartered in Hanau, Germany, is a global, private company with over 155 years of tradition. The businesses include precious metals, sensors, dental and medical products, quartz glass and specialty lighting sources. With product revenues of € 3 billion and precious metal trading revenues of € 9 billion, as well as over 11,000 employees in more than 100 companies worldwide, Heraeus holds a leading position in its global markets.