ATMI pays $95M to bring SDS gas system manufacturing and sales in-house

November 1, 2011 – GLOBE NEWSWIRE — ATMI Inc. (Nasdaq:ATMI) has taken control of, and responsibility for, worldwide distribution of its proprietary Safe Delivery Source (SDS), gas storage and delivery system and related technologies from Matheson Tri-Gas, Inc. Matheson’s license, manufacturing, and distribution agreement was terminated in exchange for a $95 million cash payment.

SDS’s efficiency improvements to ion implant for semiconductor manufacturing was developed by ATMI and Matheson, said Doug Neugold, ATMI’s chairman, CEO, and president. "Both parties agree that now is the right time to change our relationship." While ATMI is taking over all aspects of the product — manufacturing, distribution, logistics, and the direct sales interface with customers — Taiyo Nippon Sanso Corporation, Matheson’s parent entity, has agreed to continue as ATMI’s distributor of the SDS product line in Japan. Also, Matheson will continue to manufacture a portion of the SDS products for up to two years and will provide distribution and logistics services to ATMI during a transitional period, Neugold explained.

ATMI expects the new agreement to strengthen its base revenues, margins, and earnings, said Tim Carlson, ATMI’s CFO: "The transaction will be highly accretive and is expected to generate $7-8 million of incremental product revenues and $0.08-0.09 of incremental earnings per diluted share on a quarterly basis, beginning in the second quarter of 2012. Over the fourth quarter of 2011 and the first quarter of 2012, revenue will be impacted by reversals related to previously recognized product shipments into the Matheson distribution channel, as well as inventory burn in regions where Matheson will continue to sell the product until ATMI secures the appropriate licenses and permits to fully conduct business. The expected unfavorable impact on revenues over the combined next two quarters could be up to $16 million, when compared to the expected post-transaction revenue level. Additionally, under existing accounting rules, we expect to take a one-time contract termination charge of approximately $80-$85 million in the fourth quarter, subject to completion of our fair value analysis."

ATMI Inc. provides specialty semiconductor materials and high-purity materials handling and delivery solutions designed to increase process efficiencies for the worldwide semiconductor, flat panel, and life sciences industries. For more information, please visit

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