Date:13th Feb 2012
KEMET to acquire tantalum manufacturer
KEMET Corporation has signed an agreement to acquire all
of the outstanding shares of Niotan Incorporated, a leading
manufacturer of tantalum powders, from an affiliate of Denham
CapitalManagement LP. Niotan has been a significant supplier
of tantalum powder to KEMET for several years.
"This acquisition is in keeping with our announced
strategic direction to vertically integrate operations and
to better control supply sources as well as to contain our
cost structure," said Per Loof, Chief Executive Officer
of KEMET. "Acquiring Niotan is a significant step in
securing and stabilizing our tantalum powder resources.
Additionally, we recently announced a comprehensive plan
for sourcing conflict free tantalum ore from the Democratic
Republic of Congo (DRC). We will continue to purchase a
portion of our tantalum powder needs from our existing supply
base. Together, these actions have put in place a supply
chain that provides customers with confidence in the long-term
viability of our tantalum capacitance solutions and will
allow for faster to market development of specialty powders
from KEMET," continued Loof.
KEMET said it will pay an initial purchase price of $30
million at the closing of the transaction and additional
deferred payments of $45 million over a thirty month period
after the closing. KEMET will also be required to make quarterly
royalty payments for tantalum powder produced by Niotan
after the closing of the transaction, in an aggregate amount
equal to $10,000,000 by December 31, 2014. The transaction
is subject to customary closing conditions, including expiration
or termination of the waiting period under the Hart-Scott-Rodino
Act, and is expected to close in March 2012.
Niotan's headquarters and principal operating location
is in Carson City, Nevada. Niotan is the largest western
hemisphere production location for tantalum capacitor powder.