September 13, 2005 – Entegris Inc. said today that it will divest three of its smaller product lines, including gas delivery components used in semiconductor production equipment, stainless steel clean-in-place equipment for life science applications, and tape-and-reel systems used in electronics manufacturing.
The product lines to be divested have aggregate historical combined revenue of approximately $50 million, or 8 percent of total sales, and are not currently profitable. Where appropriate, the company intends to treat these businesses, which employ a total of approximately 350 people, or 13 percent of the current workforce, as discontinued operations in its financial reporting.
Gideon Argov, president and CEO, said: “Our decision to exit these product lines will allow us to focus on areas with the greatest potential for profit growth and value creation. We believe the businesses to be divested have good prospects for growth, but will be better served with other owners or partners better positioned to realize their potential.”
Argov added that the decision to make the divestitures followed a comprehensive review of all the company’s operations in connection with its recently completed merger with Mykrolis. “Our continuing businesses are leaders in their respective materials integrity management markets. With the size and scale to serve increasingly large customers on a global basis, we believe we can grow faster than the markets we serve while continuing to improve our business operating model,” Argov said.
Entegris also reported that the integration process following the merger is proceeding smoothly and raised its expected annualized cost savings from the merger to approximately $20 million from the original estimate of $15 million. The company expects these cost synergies to be fully in place by the middle of calendar year 2006.
On October 12, 2005, Entegris plans to report its financial results for the fiscal quarter and year ended August 27, 2005. The company indicated that sales for the August quarter, which include results for Mykrolis from the merger completion date of August 6, 2005, were approximately $105 million.