The $6.5B Entegris Deal That Has CMC Materials Investors Cheering

CMC Materials(NASDAQ:CCMP) stock is soaring higher on Wednesday thanks to a massive $6.5 billion deal with Entegris(NASDAQ:ENTG).

This deal has Entegris agreeing to acquire semiconductor materials supplier CMC Materialsfor a total of $6.5 billion. The company is going to use a mix of cash on hand, new debt, and shares to fund its purchase shares of CCMP stock.

The offer from Entegris includes $133 in cash and .4506 shares of ENTG stock for each share of CCMP stock. This represents a 35% premium over CCMP stock’s closing price on Tuesday and a 38% premium to its 10-day volume-weighted average share price.

According to a news release, CMC Materials shareholders will own 9% of ENTG stock once the deal is complete. The remaining 91% of shares will belong to investors in ENTG stock.

David Li, president and CEO of CMC Materials, said the following about the agreement sending CCMP stock higher today.

“CMC Materials and Entegris share highly complementary businesses and capabilities grounded in world-class innovation and customer collaboration. As part of Entegris’ leading platform, we will maintain our strong focus on technology innovation and customer partnerships and provide expanded opportunities for our employees. We look forward to what the combined company can accomplish.”

Shareholders of CCMP stock will have to approve the deal before it can close, as will regulators. So long as there are no hiccups along the way, it should reach completion in the second half of 2022.

CCMP stock is up 33.93% and ENTG stock is down 0.47% as of Wednesday afternoon.