Press release
Ichor Announces Acquisition of IMG
IMG provides precision machining, welding, brazing, and surface treatment to the semiconductor, medical, and defense & aerospace industries; acquisition is
About this update from Ichor Holdings
[{"type":"text","content":"\nIMG provides precision machining, welding, brazing, and surface treatment to the semiconductor, medical, and defense & aerospace industries; acquisition is expected to be accretive to Ichor’s earnings and operating model\n\n FREMONT, Calif.--(BUSINESS WIRE)--\nIchor Holdings, Ltd. (NASDAQ: ICHR), a leader in the design, engineering, and manufacturing of critical fluid delivery subsystems and components for semiconductor capital equipment, today announced that our wholly-owned subsidiary, Incline Merger Sub, LLC, has entered into a merger agreement with IMG Companies, LLC, a Livermore, CA-based precision machining, welding, brazing, and surface treatment business serving the semiconductor, medical, and aerospace/defense industries.\n\nThe total purchase price of $270 million is being financed with approximately $140 million of cash and marketable securities on hand and $130 million of incremental borrowing, pursuant to the recent refinancing and expansion of our credit facility. The acquisition is subject to satisfaction of customary closing conditions, and is expected to close in the fourth quarter of 2021. Cowen is our exclusive financial advisor in relation to the transaction, and our legal counsel was provided by Kirkland & Ellis LLP.\n\n“IMG brings to Ichor additional precision machining capabilities and capacity, as well as advanced manufacturing capabilities such as e-beam and laser welding, precision vacuum and hydrogen brazing, ceramic metallization, and precious metal coating capability,” commented Jeff Andreson, CEO of Ichor. “While IMG’s primary market is the semiconductor equipment industry, this acquisition will also expand Ichor’s customer base, with positions in rapidly-growing segments of the medical, aerospace and defense industries. Additionally, a significant portion of IMG’s revenues are derived from recurring sources such as spares and consumables. We are excited to welcome the IMG team to Ichor, and look forward to continue executing on our key growth strategies, which include complementary acquisitions that are accretive to our operating model.”\n\nIMG is an excellent fit for our acquisition strategies, specifically:\n\n\nIMG continues our strategy to expand our product offerings with highly-engineered, value-added products.\n\n\nThe acquisition of IMG is expected to be accretive to our operating model. ...