18 August 2022 | Thursday | News
Signing ceremony WooKyu Kim -Merck-and JaeJung Lee Mecaro
Merck, a leading science and technology company, has signed a definitive agreement to acquire the chemical business of Mecaro Co. Ltd. (Mecaro), a Korea-based and publicly listed manufacturer of heater blocks and chemical precursors for semiconductors. The acquisition is part of the Level Up growth program of Merck’s Electronics business sector, which includes investments of significantly more than € 3 billion from 2021 to 2025 in innovation and capacities and focuses on four, mutually reinforcing key priorities: scale, technology, portfolio, as well as capabilities.
The chemical business of Mecaro comprises approximately 100 highly dedicated employees and primarily develops and produces precursors used in Thin Film deposition.
“In acquiring this portion of Mecaro’s business, we will continue to expand a key segment of our Semiconductor Solutions portfolio. Simultaneously, we are building on our localization efforts and gaining a state-of-the art production facility in Eumseong and an R&D lab in Daejoen, both supporting our capacity expansion plans. These turnkey spaces will be one of the crucial elements in executing our Level Up investments in Korea,” said Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics.
The acquisition of Mecaro’s chemical business is another milestone to accelerate innovation in Merck’s Semiconductor Solutions business unit, one of the company’s three growth engines (“Big 3”), through targeted smaller to medium-sized acquisitions with high impact.
“In Merck we have found a partner who not only shares the same values as Mecaro but also has the necessary scale to successfully drive this business to the next level, for the benefit of our customers and employees,” said JaeJung Lee, President and CEO of Mecaro Co. Ltd.
“The offering of Mecaro’s chemical business very nicely complements our broad Semiconductor Solutions portfolio. The combination of Mecaro’s Thin Films technology competences and our global footprint will provide our customers with an additional value add,” said Kai Beckmann.
The transaction consideration comprises an upfront cash payment of € 75 million, plus contingent milestone payments of up to € 35 million, totalling an aggregate transaction value of up to € 110 million. The transaction is expected to be closed in Q4 2022 and is subject to regulatory clearance as well as the satisfaction of other customary closing conditions.