MKS to sell chemicals unit in a push for chip business: FT

[MKS Instruments headquarters in Silicon Valley]
Sundry Photography/iStock Editorial via Getty Images

MKS (NASDAQ:MKSI [https://seekingalpha.com/symbol/MKSI]), a supplier to the semiconductor industry, is in the final stages of offloading its specialty chemicals division worth $1B to double down on supplying chipmakers, The Financial Times reported on Saturday.

The Andover, Massachusetts-based company, which counts Taiwan Semiconductor Manufacturing Company (TSMC) among its suppliers, has engaged advisors to divest the division, and the sales process has reached an advanced stage, the FT reported, citing people familiar with the matter.

The company has attracted multiple strategic buyers and private equity groups in the auction, they said, adding that there is no certainty about a final deal.

Having joined MIKS (NASDAQ:MKSI [https://seekingalpha.com/symbol/MKSI]) in 2021 following its $5.1B buyout of Atotech, the division has generated roughly $100M in adjusted earnings annually, focusing on manufacturing technologies for advanced surface modification, among other functions.

The company is expected to retain a [https://www.ft.com/content/df1467e3-e235-4ab2-a51e-6addbc9e9dc0]section of the division, which manufactures equipment used in the production of semiconductors and circuit boards.

In 2024, MKSI’s Semiconductor division generated $1.5B in revenue with ~1% YoY growth, and revenue from its Electronics and Packaging unit held steady at $922M while its Speciality Industrial unit contracted ~5% with $1.2B in revenue. [https://seekingalpha.com/filing/9589447]

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