Entegris, Inc. has successfully completed the sale of its pipeline and industrial materials (PIM) business to SCF Partners, Inc. for up to $285 million. This purchase price consists of $260 million in cash received at closing, subject to customary post-closing adjustment, and a potential $25 million earnout based on the achievement of certain 2025 and 2026 financial performance targets.
The PIM business, acquired by Entegris in July 2022, specializes in drag reducing agents (DRAs) and a range of valve maintenance products and services for pipeline operations. The proceeds from this transaction will be utilized for further debt paydown.
As a consequence of this divestiture, Entegris has updated its financial guidance for the first quarter of 2024. For the first quarter ending March 30, 2024, the company now expects sales to range from $755 million to $775 million. The GAAP net income is projected to be between $49 million to $57 million, with diluted earnings per common share in the range of $0.33 to $0.38. On a non-GAAP basis, the company anticipates diluted earnings per common share to range from $0.59 to $0.64, reflecting net income in the range of $89 million to $97 million. Additionally, the company expects adjusted EBITDA to be approximately 27% to 28% of sales.
Entegris, a leading supplier of advanced materials and process solutions for the semiconductor and other high-tech industries, has approximately 8,000 employees across its global operations and is ISO 9001 certified. The company has manufacturing, customer service, and research facilities in various countries including the United States, Canada, China, Germany, Israel, Japan, Malaysia, Singapore, South Korea, and Taiwan.
SCF Partners, founded in 1989, provides equity capital and strategic growth assistance to develop leading energy service, equipment, and technology companies worldwide. The firm has a strong track record of investing in platform companies and has developed 18 publicly listed energy service and equipment companies over its history.
As a result of these announcements, the company's shares have moved 2.0% on the market, and are now trading at a price of $141.28. For more information, read the company's full 8-K submission here.
