ICHR - Ichor subsidiary Incline Merger Sub signs merger agreement with IMG Companies for $270M

Ichor's (NASDAQ:ICHR) wholly-owned subsidiary, Incline Merger Sub entered into a merger agreement with IMG Companies which is a precision machining, welding, brazing, and surface treatment business serving the semiconductor, medical, and aerospace/defense industries. Post the recent refinancing and expansion of its credit facility, total purchase price of $270M is being financed with ~$140M of cash and marketable securities on hand and $130M of incremental borrowing. "While IMG's primary market is the semiconductor equipment industry, this acquisition will also expand Ichor's customer base, with positions in rapidly-growing segments of the medical, aerospace and defense industries. Additionally, a significant portion of IMG's revenues are derived from recurring sources such as spares and consumables," CEO Jeff Andreson commented. The acquisition is expected to close in Q4 and is expected to be accretive to its operating model. For FY22, the acquisition is projected to add at least 100 basis points to gross margin, and

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Ichor subsidiary Incline Merger Sub signs merger agreement with IMG Companies for $270M