Entegris Terminates Distribution Deal With Element Solutions Unit In Exchange For $200M

Entegris Inc (NASDAQ:ENTG) terminated its distribution deal with MacDermid Alpha Electronics Solutions in exchange for $200 million.
MacDermid Alpha Electronics Solutions is a business unit of Element Solutions Inc (NYSE:ESI).
Entegris received $170 million at the closing, and the remainder is expected to be paid after the transitionary period.
The distribution agreement, signed in 2003, offered Entegris an exclusive right to distribute MacDermid Enthone ViaForm copper plating chemistries used in front-end chip-making electrochemical deposition processes.
Entegris expects this transaction's proceeds to contribute towards debt repayment.
Last month, Entegris reported Q1 FY23 revenue of $922.4 million, beating the consensus of $892.67 million and adjusted EPS of $0.65 exceeded the Street estimates of $0.52.
Price Action: ENTG shares are trading lower by 0.65% at $107.69 premarket on the last check Monday.