1. |
What was announced?
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CMC Materials is being acquired by Entegris in a cash and stock transaction with an enterprise value of approximately $6.5 billion. You can read more about
the transaction at EntegrisCMCTransaction.com.
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2. |
Who is Entegris?
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Entegris is a world-class supplier of advanced materials and process solutions for the semiconductor and other high-technology industries.
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Headquartered in Billerica, Massachusetts, Entegris has approximately 6,600 employees throughout its global operations. It has manufacturing, customer service
and/or research facilities in the United States, Canada, China, France, Germany, Israel, Japan, Malaysia, Singapore, South Korea and Taiwan.
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Entegris shares our commitment to world-class innovation and customer collaboration.
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You can read more at https://www.entegris.com.
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Why is Entegris acquiring CMC Materials?
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Entegris and CMC Materials have highly complementary portfolios. Together, the company will have the industry’s most comprehensive electronic materials
platform, positioning us to enhance our customer relationships and increase our ability to compete.
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The company will maintain a strong focus on technology innovation and customer partnerships.
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4. |
Why did CMC Materials agree to be sold at this time?
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Through this transaction, we will be able to deliver significant value to our customers, employees and shareholders as part of a growing global leader in
electronic materials.
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The transaction delivers meaningful value to CMC Materials’ shareholders, including a substantial cash premium as well as an opportunity to participate in the
future upside potential of the combined company through the issuance of Entegris stock as part of the purchase price.
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Specifically, under the terms of the agreement, CMC Materials shareholders will receive $133.00 in cash and 0.4506 shares of Entegris common stock for each
share of CMC Materials common stock they own.
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5. |
What are the benefits of this transaction for CMC Materials’ employees?
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This transaction is about growth and providing even better, more comprehensive solutions for our customers.
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This begins a journey toward building the preeminent spec materials company to support the critical infrastructure in the semiconductor industry.
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We believe the acquisition will allow us to unlock significant growth through enhanced innovation, scale and execution. Entegris has a track record of
prioritizing talent development and treating employees well.
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We expect new opportunities for employees as part of a larger, growing organization.
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6. |
When will the transaction be completed and what can employees expect between now and then?
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The transaction is expected to close in the second half of 2022, subject to customary closing conditions, including regulatory approval and approval of CMC
Materials shareholders.
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Until then, Entegris and CMC Materials will continue to operate as separate entities, and we will continue to operate as usual.
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The best thing you can do is continue to deliver high-quality products and solutions and best- in-class service to our customers.
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Bringing our companies together will require a thoughtful integration plan, which will be jointly developed by representatives of both companies.
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7. |
What does this mean for me and my role?
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We and Entegris have highly complementary products and solutions and ultimately this transaction is about growth.
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It is important to remember that today is day one and between now and closing we will continue to operate as separate entities. There are many details still
to be worked out as part of the integration planning process.
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Both CMC Materials and Entegris are committed to making the transition as smooth and as transparent as possible as we bring our companies together, with a
goal to minimize any disruption in the high performing businesses of both Entegris and CMC Materials.
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8. |
What will happen to my salary and benefits?
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Until the closing of the transaction, CMC Materials will operate as a separate company and maintain its own compensation and benefits programs.
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Pursuant to the merger agreement, for one year after the closing, Entegris has agreed to maintain certain levels of compensation and benefits for the
continuing CMC Materials employees, including the same base pay or wages as that applicable immediately prior to the closing. We will share more details with you over the coming months and in connection with the transition and
integration planning process.
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Like CMC Materials, Entegris has a track record of prioritizing talent development and treating employees well.
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You will be kept informed as to decisions regarding compensation and benefits as part of the integration planning process.
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9. |
Will my reporting structure change?
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Until the transaction closes, we are operating as separate entities, and there will be no changes to your reporting structure.
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There are many details to be worked out as part of the integration planning process, and we will keep you informed as the transaction progresses towards
closing and as decisions are made.
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10. |
Where will the company be headquartered and who will lead it?
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The company will be headquartered in Billerica, Massachusetts, and be led by Entegris’s current President and CEO, Bertrand Loy.
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11. |
What are your plans for integrating Entegris and CMC Materials?
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Bringing our companies together will require a thoughtful integration plan, which will be jointly developed by representatives of both companies.
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We will keep you informed as the transaction progresses towards closing and as decisions are made.
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12. |
Can CMC Materials employees interact with Entegris employees at this stage?
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As we remain two separate companies until the transaction closes, you should not engage with Entegris employees unless you are directed to do so in connection
with the integration planning process.
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13. |
What does this transaction mean for customers?
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With the industry’s most comprehensive electronic materials platform, we will be better positioned than ever to solve our customers’ most demanding process
challenges.
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We will also have greater capability to innovate and meet evolving customer demand through the deployment of proven, industry-leading commercial, operational
and R&D capabilities.
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Until the close of the transaction, which is expected to occur in the second half of 2022, Entegris and CMC Materials remain separate entities and today’s
announcement has no direct impact on our customers, our relationship with them or the products and solutions we provide to them.
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14. |
Is Future Forward a program put in place because of this transaction with Entegris?
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No, Future Forward is a separate program focused only on CMC Materials’ business.
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15. |
How will outstanding equity awards in respect of CMC Materials common stock be treated in the transaction?
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Upon the closing, employee equity awards will be treated as described below:
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Stock Options: Each CMC Materials
stock option that is outstanding immediately prior to the closing of the transaction will vest and be converted into an option to purchase Entegris common stock with the same terms and conditions as the original CMC Materials
stock option, with the number of shares and exercise price subject to the Entegris stock option adjusted to reflect the transaction.
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Restricted Shares: Each CMC
Materials restricted share that is outstanding immediately prior to the closing of the transaction will vest and be free of any restrictions and will be converted into the right to receive the merger consideration.
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Restricted Stock Units (“RSUs”):
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Each CMC Materials RSU that is outstanding immediately before the closing of the transaction and that was granted prior to December 15, 2021will vest and be
converted into the right to receive the merger consideration.
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Any CMC Materials RSU that are granted on or after December 15, 2021 will not vest on the closing of the transaction and instead will be assumed and converted
into an Entegris RSU with the same terms and conditions as the original CMC Materials RSU, with the number of shares subject to such Entegris RSUs adjusted to reflect the transaction. These Entegris RSUs will be eligible to vest
upon certain severance qualifying terminations during the 24 month period following the closing of the transaction.
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Performance-Based Restricted Stock Units (“PSUs”):
Each CMC Materials PSU will be converted into a time-based Entegris RSU based on the target level of performance with the same terms and conditions as the original CMC Materials PSU, with the number of shares subject to such
Entegris RSUs adjusted to reflect the transaction. Pursuant to Section 2(e)(i) of the applicable CMC Materials PSU award agreement, the assumed Entegris RSUs will vest in full if the holder experiences a severance qualifying
termination within 12 months following the closing of the transaction.
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16. |
What will happen to the CMC Materials Employee Stock Purchase Plan (“ESPP”)?
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The ESPP will continue to operate in accordance with its terms for the current offering period, although participants in the current offering period will not
be permitted to increase their contributions or make non-payroll contributions to the ESPP.
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Any offering period that is in progress immediately prior to the closing of the transaction will end shortly before the transaction and the shares purchased
will be entitled to the merger consideration.
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17. |
What is expected to happen to my compensation and benefits following the closing of the transaction?
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We are at a very early stage of what will be a thoughtful and collaborative integration process with Entegris.
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Until the closing of the transaction, CMC Materials will operate as a separate company and maintain its own compensation and benefits programs.
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Pursuant to the merger agreement, for one year after the closing, Entegris has agreed to maintain certain levels of compensation and benefits for the
continuing CMC Materials employees, including the same base pay or wages as that applicable immediately prior to the closing. We will share more details with you over the coming months and in connection with the transition and
integration planning process.
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18. |
What should I say if I'm asked about this transaction by investors or the media?
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It is important for CMC Materials to speak consistently about this transaction. Only authorized personnel should speak publicly on CMC Materials’ behalf or
communicate about the transaction externally via e-mail or social media.
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If you receive any inquiries from investors, please share them with Patrick Flaherty at patrick.flaherty@cmcmaterials.com. Inquiries from the media or other
outside parties should be forwarded to Colleen Mumford at colleen.mumford@cmcmaterials.com.
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19. |
Who can I contact if I have more questions?
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As we move through this process, we will keep you informed.
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If you have any additional questions now, please reach out to your HR partner or manager.
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