Merck, a leading science and technology company operating in life sciences, healthcare and electronics, has acquired the chemical business of Mecaro Co. Ltd., a Korean materials company and semiconductor components.
Merck acquired Mecaro in order to strengthen its range of materials used for the production of semiconductor products. The German company further explained on Wednesday (August 17) that the deal is part of the company’s electronics business unit’s “Level Up” growth program.
The agreement also includes investments of more than €3 billion or approximately $3.05 billion from 2021 to 2025 for innovation and capabilities, where the focus will be on four key priorities which are: scale, technology, portfolio and capabilities.
Anyway, according to Korea time, the acquisition agreement between Merck and Mecaro amounts to 110 million euros. The compensation package includes an upfront cash payment of €75 million and conditional milestone payments of up to €35 million.
The deal is expected to be finalized and closed during the fourth quarter of this year. But again, like any other acquisition transaction, this one is still subject to regulatory clearance and other customary closing conditions.
Under the agreement, Merck will secure Mecaro’s production facility located in Eumseong, North Chungcheong Province, as well as its research and development (R&D) center in Daejeon. He learned that Mecaro has about 100 dedicated employees and mainly produces precursors that are used in thin film deposition.
“By acquiring this part of Mecaro’s business, we will continue to develop a key segment of our semiconductor solutions portfolio,” said Kai Beckmann, chief electronics officer and board member of Merck, in a statement. a statement. Press release.
He added, “At the same time, we are building on our localization efforts and gaining a state-of-the-art production facility in Eumseong and an R&D lab in Daejeon, both of which support our capacity expansion plans and these turnkey spaces will be l one of the crucial elements. elements in the execution of our Level Up investments in Korea.
Mecaro Chairman and CEO Jae Jung Lee further stated that he is looking forward to the partnership.