UCT buys Israeli co Ham-Let for $348m

Ishay Davidi

Largest shareholder FIMI has more than tripled its 2012 investment in the industrial flow control systems developer for semiconductor production.

California-based Ultra Clean Holdings, Inc. (Nasdaq: UCTT) has announced an agreement to acquire Ham-Let (Israel-Canada) Ltd. (TASE: HAML) for $348 million in cash. UCT has secured a committed debt financing through Barclays to fund the acquisition and repay Ham-Let's debt.

UCT is buying all Ham-Let shares for NIS 64 per share, a 33.56% premium on the company's closing price of NIS 47.92 per share yesterday. On completion of the deal within the next three to six months, Ham-Let will become a private company and delist from the TASE.

Ham-Let develops, manufactures and distributes ultra-high purity and industrial flow control systems including valves, fittings, hoses and connectors mainly used for the manufacturing of complex semiconductor devices.

The sale is a major success for FIMI Opportunity Funds, which bought a 60% stake in Ham-Let from IDB Development in 2012 for $58 million. In September 2019, FIMI, controlled by founder and CEO Ishay Davidi, sold an 18% stake in Ham-Let for $43 million, leaving FIMI at the time with a 42% stake worth $104 million. The deal reflects a x3.2 return on its investment for FIMI with FIMI earning $190 million on Ham-Let including dividends.

Ham-Let CEO Amir Widmann said, "This transaction represents a significant benefit to Ham-Let, its employees, its customers and its shareholders. By leveraging UCT's global footprint, we can deliver a broader range of solutions and increase the combined company's strategic relevance to its customers. We look forward to working closely with UCT to ensure a smooth transition."

UCT CEO Jim Scholhamer said, "Today's acquisition is another meaningful step in the execution of our long-term strategy to grow and diversify our business by adding complementary, high value, high margin product offerings to our growing portfolio of capabilities. Upon completion of this acquisition, UCT will be able to offer our existing semiconductor equipment customers a stronger and even broader set of offerings. UCT will also gain access to a new set of customers in the semiconductor fab infrastructure and sub-fab market, which represents an excellent platform for growth."

Published by Globes, Israel business news - en.globes.co.il - on December 17, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Ishay Davidi
Ishay Davidi
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018