Entegris Terminates Distribution Agreement With Element Solution's Unit For $200 Mln

(RTTNews) - Entegris, Inc. (ENTG), a supplier of materials and solutions to semiconductor industries, announced on Monday that it has terminated the distribution agreement with MacDermid Alpha Electronics Solutions, a unit of Element Solutions Inc, for $200 million.

Entegris said it received $170 million at the closing and the remaining will be paid at the end of the transitionary period. The company expects the proceeds of the transaction to use for debt paydown.

The distribution agreement entered in 2003, provided the company the exclusive right to distribute MacDermid Enthone ViaForm copper plating chemistries, which are used in front-end chip-making electrochemical deposition processes.

In pre-market activity, shares of Entegris were trading at $ 107.69, down 0.65% or $0.70 on the Nasdaq.