Taiwan electronic component maker Yageo to acquire Kemet, target Japanese market
TAIPEI, NNA – Electronic component manufacturer Yageo Corp. announced Tuesday it plans to acquire supplier Kemet Corp. for $1.64 billion to grow stronger and gain in the Japanese market.
Yageo’s board committees have agreed to acquire all of the outstanding shares of Kemet’s common stock for cash at $27.2 per share. Yageo subsidiary Sky Merger Sub Inc. will formally acquire Kemet in the second half of 2020.
The acquisition will lead Yageo to Japan because two years ago Kemet bought Tokin Corp., a Japanese manufacturer of electronic, industrial and automotive parts. Kemet paid $149.2 million.
The buyout of Kemet will “enable us to leverage Kemet’s presence and success in Japan through the consolidation synergy of Kemet and Tokin,” a Yageo-Kemet joint statement said.
“It’s a big breakthrough for us to enter the higher-standard automotive and industrial sectors in the Japanese market through Tokin after the merger,” Yageo spokesman Andy Sung told NNA Tuesday.
U.S.-headquartered Kemet operates 23 manufacturing plants globally. The takeover is expected to increase Yageo’s annual revenue to $3 billion, the statement said. Yageo reported revenue of $2.5 billion in 2018.
The buyout also helps Yageo add products and grow out its business scale in Europe and the United States. Yageo says it expects a bigger global footprint in automotive electronics, industry and 5G networking.
Founded in 1977, Yageo manufactures resistors, capacitors and wireless and circuit protection components. Many of those parts sell to builders of consumer electronics, telecommunication equipment and automakers.