Business
UCT Completes Acquisition of Ham-Let (Israel-Canada) Ltd.
- Ham-Let customers include semiconductor equipment manufacturers and chip makers - The acquisition expands UCT's addressable market in semiconductors -
About this update from Ultra Clean Holdings, Inc.
[{"type":"text","content":"- Ham-Let customers include semiconductor equipment manufacturers and chip makers\n - The acquisition expands UCT's addressable market in semiconductors\n - Ham-Let increases UCT's vertical capabilities and adds high value, high gross margin product offerings\n\n\nHAYWARD, Calif., March 31, 2021 /PRNewswire/ -- Ultra Clean Holdings, Inc. (Nasdaq: UCTT), today announced it has completed the acquisition of Ham-Let (Israel-Canada) Ltd. (\"Ham-Let\") for approximately $351 million, in a transaction which includes $284 million of equity value plus $67 million of net debt.\n\n \n \n \n \n \n \n\n \n\"The timing of this acquisition is ideal as growing semiconductor demand and increased device complexity are creating significant business opportunity,\" said Jim Scholhamer, CEO. \"The addition of Ham-Let's high value, process instrumentation and flow control systems to our current set of offerings adds even more value to, and deepens our partnerships with our customers as we work together to solve the challenges of today's semiconductor industry. The combination of these products and capabilities will provide an excellent growth platform.\"\nUnder the terms of the agreement, the total transaction value is approximately $351 million and is being structured as an all-cash transaction. UCT anticipates the acquisition to be accretive to shareholders on an adjusted basis within the first year after close.\nAs of December 25, 2020 for UCT, and December 31, 2020 for Ham-Let, pro forma combined LTM revenue was $1.6 billion, operating income was $172.3 million and Adjusted EBITDA was $204.9 million. \nBarclays acted as Sole Lead Arranger and Bookrunner on the Term Loan B offering, Meitar Law Offices (Israel) served as UCT's lead legal advisor with the assistance of Davis Polk and Wardwell LLP. Needham and Co. provided a fairness opinion to UCT. Naschitz, Brandes, Amir Law Offices served as legal advisor to Ham-Let and PricewaterhouseCoopers provided a fairness opinion. \nAbout Ultra Clean Holdings, Inc. \nUltra Clean Holdings, Inc. is a leading developer and supplier of critical subsystems, components and parts, and ultra-high purity cleaning and analytical services primarily for the semiconductor industry. Under its Products division, UCT offers its customers an integrated outsourced solution for major subassemblies, improved design-to-delivery ...