KEMET completes acquisition of NEC TOKIN
April 19, 2017
KEMET Corporation announced that it has completed the acquisition, through its wholly owned subsidiary, KEMET Electronics Corporation (“KEC”), of NEC TOKIN Corporation (“NEC TOKIN”).
The acquisition of NEC TOKIN was completed pursuant to the previously announced February 23, 2017 Definitive NEC TOKIN Stock Purchase Agreement between KEC and NEC Corporation. Pursuant to the Agreement, KEC paid NEC JPY 16.2 billion, or approximately $149.2 million, for all of the outstanding shares of NEC TOKIN it does not already own. The purchase price was comprised of JPY 6.0 billion (approximately $55.3 million) plus one-half of an amount determined to be the excess net cash proceeds from the announced sale of NEC TOKIN’s electro-mechanical devices (“EMD”) business, after the repayment of outstanding indebtedness of NEC TOKIN and after the payment of taxes, fees and expenses relating to the sale of the EMD business. The excess cash calculation is subject to working capital adjustments pursuant to a master sale and purchase agreement for the EMD business. Effective as of today, NEC TOKIN has changed its name to TOKIN Corporation.
As previously announced, based on current estimates, after all payments to NEC (and net of taxes, fees and expenses), the acquisition effectively results in a net cash inflow to KEMET, on a consolidated basis, of approximately $38.6 million and 100% ownership of the shares of NEC TOKIN. KEMET’s consolidated combined cash on the balance sheet (including TOKIN Corporation), post-closing, is approximately $269.1 million.
For details of the Agreement, please refer to the Company’s Form 8-K filed on February 23, 2017.
About KEMET
The Company’s common stock is listed on the NYSE under the ticker symbol “KEM” (NYSE:KEM). At the Investor Relations section of our web site at http://www.kemet.com/IR, users may subscribe to KEMET news releases and find additional information about our Company. KEMET offers our customers the broadest selection of capacitor technologies in the industry, along with an expanding range of electromechanical devices, electromagnetic compatibility solutions and supercapacitors. Our vision is to be the preferred supplier of electronic component solutions demanding the highest standards of quality, delivery and service. Additional information about KEMET can be found at http://www.kemet.com.
