Vishay Announces Acquisition Of Specialty Capacitor Product Line From Kemet
Vishay Intertechnology, Inc. announced the acquisition of a specialty capacitor (wet tantalum) product line from KEMET Corp. (NYSE: KEM) for $35.2 million and other consideration in the form of a three-year term loan of $15 million.
Sales of these products during Kemet’s fiscal-year ended March 31, 2008 were approximately $16.0 million, of which approximately $7 million represent former Arcotronics products (acquired last year by KEMET) sold mostly outside of the US and approximately $9 million of original KEMET products sold mostly in the US. Worldwide sales during the quarter ended June 30, 2008 were $4.4 million.
Terms of the secured loan of $15 million to KEMET from Vishay include a three-year non-amortizing maturity, an interest rate of LIBOR plus 4%, security consisting of accounts receivable currently in the amount of approximately $34 million, and certain limited events of default.
Dr. Felix Zandman, Executive Chairman of the Board and Chief Technical and Business Development Officer, and Dr. Gerald Paul, President and CEO, stated, "With this acquisition we broaden our product portfolio in specialty capacitors used in military, aerospace and medical applications. It fits our strategy to expand our product offering in specialty lines."
