Entegris Terminates Distribution Deal With Element Solutions Unit In Exchange For $200M
Portfolio Pulse from Lekha Gupta
Entegris has terminated its distribution deal with MacDermid Alpha Electronics Solutions, a unit of Element Solutions, in exchange for $200 million. Entegris received $170 million at closing, with the remainder to be paid after the transitionary period. The company plans to use the proceeds for debt repayment.

June 05, 2023 | 1:26 pm
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Entegris terminates its distribution deal with MacDermid Alpha Electronics Solutions for $200 million, planning to use the proceeds for debt repayment.
Entegris has terminated its distribution deal with MacDermid Alpha Electronics Solutions, receiving $170 million at closing and the remainder after the transitionary period. This termination will provide Entegris with funds to repay debt, which could be seen as a positive move for the company. However, the termination of the deal may also impact future revenues, making the short-term impact on the stock price neutral.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
NEUTRAL IMPACT
Element Solutions' unit MacDermid Alpha Electronics Solutions has its distribution deal with Entegris terminated in exchange for $200 million.
Element Solutions' unit MacDermid Alpha Electronics Solutions has had its distribution deal with Entegris terminated, receiving $200 million in exchange. This termination may impact the unit's future revenues, but the cash influx could be used for other strategic initiatives. The short-term impact on Element Solutions' stock price is neutral, as the termination's effects on the company's overall performance are uncertain.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 75