Yageo Corporation’s $1.8 Billion Acquisition of Kemet Corporation

Simpson Thacher advised Yageo Corporation on the deal. Skadden advised KEMET Corporation.

Yageo Corporation (TAIEX: 2327) entered into a definitive agreement to acquire KEMET Corporation (NYSE: KEM) in an all-cash transaction valued at $1.8 billion, including the assumption of net debt.

Upon closing, Yageo will acquire all the outstanding shares of KEMET’s common stock for $27.20 per share in cash. The transaction, which is expected to close in the second half of 2020, is subject to customary closing conditions and the receipt of required regulatory approvals.

Yageo is a leading global electronic component company with capabilities on a global scale, including production and sales facilities in Asia, Europe and the Americas. Yageo provides one-stop-shopping, offering its complete product portfolio of resistors, capacitors, wireless and circuit protection components to meet the diverse requirements of customers.

KEMET is a leading global supplier of high-end electronic components with a global footprint that includes 23 manufacturing facilities and approximately 14,000 employees located in 22 countries in the Americas, Asia and Europe. KEMET’s main products include tantalum capacitors, ceramic capacitors, magnetic, sensors and actuators, and film and electrolytic capacitors which products serve a number of applications, such as advanced automotive electronics, industrial applications, aerospace, medical, as well as smartphones, cloud/networking equipment, wireless communications, alternative energy and 5G technology.

The Simpson Thacher team includes Michael T. Holick, Matthew Gabbard, Amy Hutchings and Michael Yan (M&A); Justin Lungstrum and Dean Masuda (Credit); Jeannine McSweeney, Jake Phillips and Arielle Trapp (Employee Benefits and Executive Compensation); Jonathan Goldstein and Brian Mendick (Tax); Peter Guryan, Abram Ellis and Richard Jamgochian (Antitrust); Lori Lesser and Melanie Jolson (Intellectual Property); Krista McManus (Real Estate); David Caldwell (Regulatory); Andrew Kofsky (Labor); and Timothy Mulvihill (Environmental).

The Skadden team included M&A partners Richard Grossman (New York) and Christopher Barlow (New York); Banking partner Sal Guerrera (New York); CFIUS partner Ivan Schlager (Washington, D.C.); Executive Compensation and Benefits partner Regina Olshan (New York); Tax partner Sally Thurston (New York); Antitrust/Competition partners Kenneth Schwartz (New York) and Frederic Depoortere (Brussels); Real Estate partner Audrey Sokoloff (New York); and Intellectual Property partner Resa Schlossberg (New York).

Involved fees earner: David Caldwell – Simpson Thacher & Bartlett; Abram Ellis – Simpson Thacher & Bartlett; Matthew Gabbard – Simpson Thacher & Bartlett; Jonathan Goldstein – Simpson Thacher & Bartlett; Peter Guryan – Simpson Thacher & Bartlett; Michael Holick – Simpson Thacher & Bartlett; Richard Jamgochian – Simpson Thacher & Bartlett; Melanie Jolson – Simpson Thacher & Bartlett; Andrew Kofsky – Simpson Thacher & Bartlett; Lori Lesser – Simpson Thacher & Bartlett; Justin Lungstrum – Simpson Thacher & Bartlett; Dean Masuda – Simpson Thacher & Bartlett; Krista McManus – Simpson Thacher & Bartlett; Jeannine McSweeney – Simpson Thacher & Bartlett; Brian Mendick – Simpson Thacher & Bartlett; Timothy Mulvihill – Simpson Thacher & Bartlett; Jacob Phillips – Simpson Thacher & Bartlett; Arielle Trapp – Simpson Thacher & Bartlett; Michael Yan – Simpson Thacher & Bartlett; Christopher Barlow – Skadden Arps Slate Meager & Flom; Frederic Depoortere – Skadden Arps Slate Meager & Flom; Richard Grossman – Skadden Arps Slate Meager & Flom; Sal Guerrera – Skadden Arps Slate Meager & Flom; Regina Olshan – Skadden Arps Slate Meager & Flom; Ivan Schlager – Skadden Arps Slate Meager & Flom; Resa Schlossberg – Skadden Arps Slate Meager & Flom; Kenneth Schwartz – Skadden Arps Slate Meager & Flom; Audrey Sokoloff – Skadden Arps Slate Meager & Flom; Sally Thurston – Skadden Arps Slate Meager & Flom; Amy Hutchings – Slaughter and May;

Law Firms: Simpson Thacher & Bartlett; Skadden Arps Slate Meager & Flom; Slaughter and May;

Clients: Kemet Corporation; Yageo Corporation;

Author: Ambrogio Visconti