ASM COMPLETES ACQUISITION OF LPE

Rhea-AI Summary

ASM International has successfully acquired LPE S.p.A., an Italian manufacturer of epitaxial reactors for silicon carbide (SiC) and silicon, after obtaining regulatory approvals. The deal, announced on July 18, 2022, involves a mix of cash, an earn-out, and 631,154 ASM shares. LPE is anticipated to generate over €100 million in revenue in 2023, benefiting from the growing market for SiC epitaxy equipment, projected to expand at a CAGR of over 25% through 2025. LPE will operate under ASM’s Global Products organization.

Positive

• The acquisition positions ASM to capture growth in the SiC epitaxy market.
• LPE is profitable with margins aligned with ASM's targets.
• LPE's revenue is projected to exceed €100 million in 2023.

Negative

• None.

 

Almere, The Netherlands
October 03, 2022, 6.00 p.m. CET

ASM International (Euronext Amsterdam: ASM) today announces that it has completed the acquisition of LPE S.p.A., after having received regulatory approvals.

On July 18, 2022, ASM entered into a definitive agreement under which it would at closing acquire all of the outstanding shares of LPE, an Italian based manufacturer of epitaxial reactors for silicon carbide (SiC) and silicon. As announced in our press release of July 18, 2022, the transaction is financed with a combination of cash, a conditional earn out, and 631,154 ASM shares (a combination of 580,000 treasury shares and 51,154 newly issued shares).

The acquisition has been completed today, and LPE is now a fully owned subsidiary and will operate as a product unit under ASM’s Global Products organization.

“This is an important milestone for ASM. We are excited to welcome LPE and its talented and experienced team into ASM,” said Benjamin Loh, President and CEO of ASM. “Together with LPE we look forward to capturing many of the opportunities in the high-growth silicon carbide epitaxy market and to support our power electronics customers with innovative solutions, driving the further electrification of the automotive industry.”
“I believe ASM is the right partner for LPE, especially now looking at the growth we are seeing in the silicon carbide market. The global reach that ASM has with its entrenched supplier and customer networks will bring benefits to all stakeholders,” said Franco Preti, who envisioned the silicon carbide opportunity in the earliest stages and led LPE growth as CEO until the acquisition.

LPE is profitable with margins in line with ASM’s 2021-2025 target model. As announced earlier, LPE’s revenue is projected to grow to more than €100 million in 2023, mainly driven by its SiC epitaxy equipment business. Based on ASM internal estimates, demand for SiC epitaxy equipment is forecasted to grow at a CAGR in excess of 25% from 2021 to 2025, driven by the rapidly expanding market for electric vehicles.

About ASM International

ASM International N.V., headquartered in Almere, the Netherlands, and its subsidiaries design and manufacture equipment and process solutions to produce semiconductor devices for wafer processing, and have facilities in the United States, Europe, and Asia. ASM International's common stock trades on the Euronext Amsterdam Stock Exchange (symbol ASM). For more information, visit ASM's website at www.asm.com

Cautionary Note Regarding Forward-Looking Statements: All matters discussed in this press release, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include, but are not limited to, economic conditions and trends in the semiconductor industry generally and the timing of the industry cycles specifically, currency fluctuations, corporate transactions, financing and liquidity matters, the success of restructurings, the timing of significant orders, market acceptance of new products, competitive factors, litigation involving intellectual property, shareholders or other issues, commercial and economic disruption due to natural disasters, terrorist activity, armed conflict or political instability, changes in import/export regulations, epidemics and other risks indicated in the Company's reports and financial statements. The Company assumes no obligation nor intends to update or revise any forward-looking statements to reflect future developments or circumstances.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

CONTACT

Investor and media contact:
Victor Bareño
T: +31 88 100 8500
E: investor.relations@asm.com

Attachment

• 20221003 ASM COMPLETES ACQUISITION OF LPE

FAQ

What is the significance of ASM's acquisition of LPE?

The acquisition enhances ASM's capabilities in the high-growth silicon carbide epitaxy market, positioning it for increased market opportunities.

How will LPE's acquisition affect ASM's revenue?

LPE is expected to generate over €100 million in revenue in 2023, contributing significantly to ASM's overall financial growth.

What is the expected growth rate for SiC epitaxy equipment?

Demand for SiC epitaxy equipment is forecasted to grow at a CAGR of over 25% from 2021 to 2025.

How was the acquisition of LPE financed?

The acquisition was financed through a combination of cash, a conditional earn-out, and 631,154 ASM shares.