Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, February 1, 2019

Article Excerpt

ENTEGRIS INC., $33.38, symbol ENTG on Nasdaq, is a leading provider of specialty chemicals to the high-tech industry in the U.S. and overseas. On January 28, 2019, Entegris announced that it has agreed to buy Versum Materials Inc. (symbol VSM on New York). It’s an Arizona-based provider of specialty chemicals and gases to computer chip and electronic-display makers. Versum is also a spinoff of Air Products & Chemicals Inc. (symbol APD on New York), which set it up as a separate company on October 3, 2016. We looked at Versum in our January 2018 issue—that’s when we said it rated Highest in our Takeover Target Rating. We saw the stock as a buy at $37. The stock dropped as low as $25.02 in December 2018 along with the market. But it has soared back to $37 on the Entegris acquisition. In 2018, the two companies had combined revenues of $3 billion. They expect to generate $75 million in annual cost savings within 12 months of…