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MKS Instruments plans new debt financing for Atotech purchase
By Sara Rosenberg
New York, July 1 – MKS Instruments Inc. has a commitment for debt financing to help fund its acquisition of Atotech Ltd., according to an 8-K filed with the Securities and Exchange Commission on Thursday.
J.P. Morgan and Barclays provided the debt commitment.
Total debt outstanding is expected to be $5.3 billion at closing.
The company also plans on getting a new $500 million revolving credit facility to replace its current $100 million asset-based revolver.
Under the agreement, Atotech is being purchased for $16.20 in cash and 0.0552 of a share of MKS common stock for each Atotech common share. The equity value of the transaction is $5.1 billion, and the enterprise value is about $6.5 billion.
Other funds for the acquisition will come from cash on hand.
Estimated gross leverage will be under 4x, and net leverage will be under 3.5x.
Closing is expected in the fourth quarter, subject to Atotech shareholder approval, approval of the Royal Court of Jersey, regulatory approvals, and other customary conditions.
MKS is an Andover, Mass.-based provider of technologies that enable advanced processes and improve productivity. Atotech is a Berlin-based specialty chemicals technology company.
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