AVX plans to acquire Tantalum Division
AVX is buying the Tantalum Division from Nichicon.
AVX could have hired merger and acquisition consultants to support it in its proposed purchase of Nichicon's Tantalum Division.
The overall value of this transaction is approximately $86 million (£53.3 million) and will involve AVX buying all of Nichicon's manufacturing subsidies for tantalum components, with these assets located in China's Tianjin district and Shiga in Japan.
Annually, the division realises component sales of an estimated $75 million.
A number of customary closing conditions must be completed before the transaction can be concluded, including regulatory approvals.
It is expected to close before December 31st 2012 and should enable AVX to improve its efficiencies in tantalum component manufacturing and expand throughout Asia.
This firm is located in South Carolina's Greenville region and specialises in the creation and supply of passive electronic parts and related goods.
Chief operating officer and president of AVX John Gilbertson said: "The purchase of the tantalum component operations of Nichicon enhances our leadership position in the passive electronic component industry."
Posted by Ron Maverick
Source: AVX press release, October 16th