Yageo acquires KEMET for US$1.8bn

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Simpson Thacher & Bartlett (STB) and Taiwan’s Tsar & Tsai Law Firm acted on behalf of Taiwanese electronic component manufacturer Yageo Corp in its US$1.8 billion acquisition of US rival Kemet Corp.

The deal is expected to close in the second half of 2020 with the combined company creating an industry leader in the US$28-$32 billion passive components industry, addressing a full range of end-market segments with combined annual revenues of approximately US$3 billion.

In addition to an enhanced global footprint, Yageo will now be able to partner with longstanding customers worldwide with a combined 42 manufacturing plants and 14 dedicated research and development centres.

Yageo has production and sales facilities in Asia, Europe and the Americas and offers a product portfolio of resistors, capacitors, wireless and circuit protection components. Kemet is a global supplier of high-end electronic components with 23 manufacturing facilities in 22 countries in the Americas, Asia and Europe. Its core products include tantalum capacitors, ceramic capacitors, magnetic, sensors and actuators, and film and electrolytic capacitors.

The merger is expected to enhance Yageo’s ability to serve customers in consumer electronics as well as in the high-end automotive, industrial, aerospace, telecom and medical sectors, said the company’s chairman, Pierre Chen.

The STB team was led by partners Michael Holick, Justin Lungstrum, Jeannine McSweeney, Jonathan Goldstein, Peter Guryan, Abram Ellis and Lori Lesser. STB and Tsar & Tsai Law Firm in Taiwan served as legal advisers to Yageo.

Skadden’s team representing KEMET was led by partners Richard Grossman, Christopher Barlow, Sal Guerrera, Ivan Schlager, Regina Olshan, Sally Thurston, Kenneth Schwartz, Frederic Depoortere, Audrey Sokoloff and Resa Schlossberg.