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Asyst Technologies acquires majority of shares in AMHS joint venture |
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Jun 22, 2006 at 02:22 PM |
 Asyst Technologies, has signed a definitive agreement with Shinko Electric Co to purchase an additional 44.1% of the outstanding common stock of Asyst Shinko, Inc (ASI) that designs and builds Automated Materials Handling Systems for semiconductor fabs and Flat Panel Display facilities, at a cost of approximately $102 million US dollars. The deal takes Asyst's stake in ASI up to 95.1% with option in a year to purchase remaining 4.9% for approximately $11 million US dollars.
"When we established the ASI joint venture more than three years ago, we saw the potential to expand our served market and to gain market share by leveraging the complementary capabilities of Asyst Technologies and Asyst Shinko," said Steve Schwartz, chairman and chief executive officer of Asyst. "We have accomplished both objectives, and today are the market leader in virtually every segment of semiconductor fab automation. With this transaction, we have the opportunity to build upon our success by more tightly integrating current and future products and better coordinating the way we serve our customers. We also expect to deliver more value to shareholders as more of ASI's earnings flow to the consolidated enterprise and we begin to fully realize the benefits of our unified business."
Asyst Shinko will maintain its current headquarters in Tokyo and manufacturing plants in Ise and Toyohashi, Japan. Hitoshi Kawano in a statement, however Schwartz noted in a conference call discussing the purchase that the company will start to work with other firms to gradually move AMHS fabrication to an outsourced model, similar to its model used for its EFEM and sorter products.
The deal is also intended to boost revenues for Asyst, which is struggling to be profitable on a consistent basis. ASI sales have grown to around $300 million US dollars annually as the building of 300mm fabs and FPD plants has increased significantly.
The company plans to fund the transaction and related fees with $20 million of cash and $95-$100 million of debt.
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