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Ultra Clean Holdings, Inc. -- Moody's says Ultra Clean's announced acquisition of Ham-Let has no immediate effect on ratings

·9 min read

Announcement: Moody's says Ultra Clean's announced acquisition of Ham-Let has no immediate effect on ratings

Global Credit Research - 17 Dec 2020

New York, December 17, 2020 -- Moody's Investors Service said Ultra Clean Holdings, Inc. (Ultra Clean) announced that it has entered into a definitive agreement to acquire Ham-Let (Israel-Canada) Ltd. (Ham-Let), a public company listed on the Tel Aviv stock exchange, for total transaction value of approximately $348 million in cash. The transaction is expected to close in the first half of 2021 subject to customary closing conditions. Ultra Clean has secured a debt financing commitment to fund the acquisition. Concurrently with the acquisition, Ultra Clean has announced that it is reviewing its overall capital structure to ensure the maintenance of a strong balance sheet and financial flexibility. Pending this review and a determination of the final capital structure after the acquisition, the transaction has no immediate effect on the company's Corporate Family Rating of B1, senior secured bank credit facility rating of B1, or the stable outlook.

Ham-Let is a global leader in the development, manufacturing and distribution of ultra-high Purity and industrial flow control systems, including valves, fittings, hoses and connectors largely used for the manufacturing of semiconductor devices. Ham-Let is current a supplier to Ultra Clean which presents a vertical integration opportunity. Ham-Let is also a supplier to Ultra Clean's largest semiconductor capital equipment customers, and the acquisition expands and deepens Ultra Clean's strategic customer relationships. In addition, Ham-Let provides access to an incremental group of customers in the semiconductor fab infrastructure and sub-fab market. The transaction presents a meaningful cost synergy opportunity relative to its size.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Peter Krukovsky Vice President - Senior Analyst Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Lenny J. Ajzenman Associate Managing Director Corporate Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653

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