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Cohu Announces Divestment of Printed Circuit Board Test Business

Strategic Insights

— 1 min read

Cohu, a global leader in back-end semiconductor equipment and services, has announced the divestment of its Printed Circuit Board Test (PCB) business to Mycronic AB, a Swedish high-tech company, for approximately $125 million in cash. The transaction is expected to be completed by the end of June 2021, subject to customary closing conditions. Cohu intends to use the expected net cash proceeds of approximately $95 to $100 million to repay outstanding principal on its term loan facility.

The PCB business, which reported sales for the last twelve months of $52.9 million as of March 27, 2021, has been a valued part of Cohu's business since joining in 2018 through the Xcerra acquisition. Luis A. Muller, Cohu's President and Chief Executive Officer, stated that the divestment will enable Cohu to focus on semiconductor equipment and services businesses, while creating additional scale in the PCB market segment.

Key Takeaways:

  • Cohu will receive approximately $125 million in cash from Mycronic AB for the divestment of its PCB business.
  • The net cash proceeds from the transaction are expected to be approximately $95 to $100 million.
  • Cohu intends to use the proceeds to repay outstanding principal on its term loan facility.
  • The PCB business reported sales of $52.9 million for the last twelve months as of March 27, 2021.
  • The transaction is expected to be completed by the end of June 2021, subject to customary closing conditions.
  • Cohu will focus on semiconductor equipment and services businesses following the divestment.
  • The transaction is expected to create additional scale in the PCB market segment.

Statistics:

  • $125 million: Approximate cash consideration received by Cohu from Mycronic AB.
  • $95m - $100m: Expected net cash proceeds to Cohu after transaction costs and taxes.
  • $52.9 million: Sales of PCB business for the last twelve months as of March 27, 2021.
  • June 2021: Expected completion date for the transaction.
  • 2018: Year when Cohu acquired Xcerra and the PCB business joined Cohu.

Sources:

  • Cohu, Inc. (2021, May 10). Cohu Announces Divestment of its Printed Circuit Board Test Business.

https://www.businesswire.com/news/home/20210510006035/en/Cohu-Announces-Divestment-Printed-Circuit-Board-Test-Business.

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