Yageo Corp (國巨) yesterday said it has reached an agreement with Heraeus Holding GmbH to fully acquire its subsidiary Heraeus Nexensos GmbH in an all-cash transaction worth NT$2.84 billion (US$89.12 million) in an effort to build a greater presence in the global industrial devices and vehicle electronics markets.
It is to be Yageo’s first acquisition since it acquired Kemet Corp in November 2019 for US$1.64 billion. The company has grown into the world’s No. 3 maker of passive components through 20 mergers and acquisitions over the past two decades.
Heraeus Nexensos, which is headquartered in Hanau, Germany, makes premium platinum thin-film temperature sensors for high-precision measurements, and has more than 100 years of history in the high-end industrial and automotive segments.
Photo: CNA
As of last year, about 60 percent of Heraeus Nexensos’ revenue was from North America and Europe, Yageo said in a statement.
All of its revenue came from industrial and automotive customers, the statement said.
Heraeus Nexensos’ revenue last year was 78.46 million euros (US$76.27 million), it said.
“To us, temperature sensors are a great addition to our existing sensor portfolio from Yageo and Tokin Corp, and the perfect product to propel us further into the sensor market given the similarities in business models and secular trends,” Yageo chairman Pierre Chen (陳泰銘) said in the statement.
Tokin, based in Sendai, Japan, is an arm of Kemet that manufactures passive components, making tantalum capacitors, electric double-layer capacitors and sensors, the company’s Web site says.
“Heraeus Nexensos has a highly complementary set of products and customers, especially in the automotive and industrial segments, which are the key drivers for future growth,” the Yageo statement said.
It operates two manufacturing sites in Germany and Malaysia with a total workforce of about 480, it said.
About 20 percent of Yageo’s revenue in the second quarter came from passive components — multilayer ceramic capacitors and chip resistors used in vehicles, it said.
The company aims to increase the revenue contribution to about 22 percent next year, it said.
The acquisition would give Yageo immediate cross-selling opportunities and boost its market share, the statement said, adding that it would help its customers simplify their supply chain management to create value and convenience.
The goal is to complete the deal in the first half of next year, subject to customary closing conditions and the receipt of required regulatory approvals, it said.
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