Merck expands – acquire the chemical business of Mecaro
Merck says that it has signed a definitive agreement to acquire the chemical business of Mecaro Co. Ltd. (Mecaro), a South Korean manufacturer of heater blocks and chemical precursors for semiconductors.
The acquisition is part of the"Level Up" growth program of Merck's electronics business. This includes investments of significantly more than EUR 3 billion from 2021 to 2025 in innovation and capacities. Merck says that the focus of the program is to reinforce key priorities, namely 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, a press release reads.
“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,” says Kai Beckmann, Member of the Executive Board of Merck and CEO Electronics, in the press release.
The acquisition is described as a milestone to accelerate innovation in Merck’s Semiconductor Solutions business unit, one of the company’s three growth engines.
“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,” says JaeJung Lee, President and CEO of Mecaro Co. Ltd.
The transaction consideration comprises an upfront cash payment of EUR 75 million, plus contingent milestone payments of up to EUR 35 million, totalling an aggregate transaction value of up to EUR 110 million. The transaction is expected to be closed in Q4 2022.