KKR Sells Kokusai Electric -- WSJ

By Chris Wack

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (July 2, 2019).

Applied Materials Inc. said it is acquiring Kokusai Electric Corp. for $2.2 billion from global investment firm KKR & Co.

Like Applied Materials, Kokusai is a producer of semiconductor-manufacturing equipment. Following the close of the transaction, Kokusai Electric will operate as a business unit of Applied Materials' Semiconductor Products Group and continue to be based in Tokyo.

Applied Materials said the acquisition is expected to be immediately accretive to its adjusted earnings per share.

KKR acquired Kokusai Electric in 2017.

Applied Materials expects to finance the transaction using a combination of balance sheet cash and a term loan facility. The transaction is expected to close within 12 months.

(END) Dow Jones Newswires

July 02, 2019 02:47 ET (06:47 GMT)

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