Categories Earnings, LATEST, Other Industries, U.S. Markets News
Applied Materials to take over Kokusai Electric for $2.2 billion
Applied Materials Inc. (NASDAQ: AMAT) announced its decision to acquire Kokusai Electric Corporation from investment firm KKR for $2.2 billion in cash. The deal is anticipated to close within approx. 12 months subject to approvals.
After the acquisition, Kokusai will operate as a business unit of Applied’s Semiconductor Products Group and will continue to be based in Tokyo, with technology and manufacturing centers in Japan and Korea.
Applied will finance the deal through a combination of cash and a term loan facility. The transaction was approved by Applied’s Board of Directors, and is expected to be immediately accretive to the company’s adjusted EPS at close.
Kokusai provides high productivity batch processing systems which will complement Applied’s single-wafer processing systems. Applied will also benefit from Kokusai’s supply chain and manufacturing capabilities in Japan and Asia.
In its most recent quarter, Applied Materials saw a 23% drop in sales to $3.5 billion and a 41% decline in adjusted EPS to $0.70. The company expects adjusted EPS of $0.67 to $0.75 for the third quarter of 2019.
Applied Materials’ shares have gained 38% so far this year and 13% over the past three months. The stock was up 3.5% in premarket hours on Monday.
Most Popular
CVX Earnings: Chevron reports lower revenue and profit for Q1 2024
Energy exploration company Chevron Corporation (NYSE: CVX) announced first-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation was $5.50 billion or
ABBV Earnings: AbbVie reports lower adj. profit for Q1 2024; revenue edges up
Specialty biopharmaceutical company AbbVie, Inc. (NYSE: ABBV) Friday announced first-quarter 2024 financial results, reporting a decline in adjusted earnings and a modest rise in revenues. The company reported worldwide net
CL Earnings: Key quarterly highlights from Colgate-Palmolive’s Q1 2024 financial results
Colgate-Palmolive Company (NYSE: CL) reported first quarter 2024 earnings results today. Net sales increased 6.2% year-over-year to $5.06 billion. Organic sales increased 9.8%. Net income attributable to Colgate-Palmolive Company was
Comments
Comments are closed.