Parties
Company
Entegris, Inc.
Company
SCF Partners, Inc.
Entegris, Inc. (Nasdaq: ENTG) has completed the sale of its Pipeline and Industrial Materials business (PIM) to SCF Partners, Inc. for a total of $285 million. This includes $368 million (US$260) million in cash received at closing and a potential $34 million (US$25 million) earnout tied to specific financial targets in 2025 and 2026. The PIM business, acquired through Entegris' purchase of CMC Materials in July 2022, specializes in drag reducing agents (DRAs) and valve maintenance products for pipeline operations. The proceeds from this transaction will be used to further pay down debt.
Following the divestiture, Entegris updated its financial guidance for Q1 2024. Sales are projected to be between $1.02 billion and $1.05 billion (between US$755 million and US$775 million), with GAAP net income expected to range from $67 million to $77 million (US$49 million to US$57 million). Diluted earnings per common share are anticipated to be between $0.45 and $0.52 (US$0.33 and US$0.38) on a GAAP basis and $0.59 to $0.64 on a non-GAAP basis, reflecting net income between $89 million and $97 million. Adjusted EBITDA is forecasted to be around 27% to 28% of sales.
Legal advisory services for Entegris were provided by Jefferies LLC as financial advisor and Wachtell, Lipton, Rosen & Katz as legal counsel. McCarthy Tétrault advised SCF Partners, Inc.
Deal Type
Merger & AcquisitionIndustry
InfrastructureTransaction
$ 368,000,000Deal Status
ClosedClosing Date
04 March 2024