Recently, Merck is seeking to strengthen its capabilities to respond to the rapidly growing global semiconductor solutions market by acquiring a domestic company recognized for its technological prowess.

Merck, a semiconductor materials company, announced on the 17th that it has signed a definitive agreement to acquire the chemical business division of Mecaro Co., Ltd. (hereinafter Mecaro), a listed company headquartered in Korea and a manufacturer of semiconductor heater blocks and chemical precursors.

This acquisition was pursued as part of Merck Electronics' 'Level Up Program,' which involves investing more than 3 billion euros (approximately 4 trillion won) in innovation and production capacity from 2021 to 2025, centered on Merck's four core priorities: scale, technology, portfolio, and capabilities.

Mecaro Chemical Business consists of about 100 skilled personnel and focuses on the development and production of precursors used in thin film deposition.

This acquisition transaction consists of a cash upfront payment of 75 million euros (approx. 100 billion won) and conditional payments of up to 35 million euros (approx. 46.7 billion won) for milestones, with a total transaction value of up to 110 million euros (approx. 146.9 billion won). The transaction is expected to close in the fourth quarter of 2022 and must meet regulatory approvals and other customary closing conditions.

Merck is expected to accelerate innovation in its semiconductor solutions business unit, one of its three growth engines, through the acquisition of select small and medium-sized companies with high influence.

Dr. Kai Beckmann, a member of Merck’s board and CEO of Electronics, emphasized, “Through the acquisition of Mecaro’s chemical business, Merck will continue to expand a key segment of its thin film portfolio. At the same time, while strengthening its localization efforts, Merck has secured a state-of-the-art manufacturing facility in Eumseong and an R&D laboratory in Daejeon, and this turnkey space will be a key element in Merck’s implementation of level-up investments in Korea.”

Dr. Beckmann assessed, “Through this acquisition, Mecaro’s products excellently complement Merck’s extensive semiconductor solution portfolio,” adding, “The combination of Mecaro’s thin-film technology capabilities and Merck’s global presence is expected to provide additional added value to our customers.”

Lee Jae-jung, CEO of Mecaro, explained, “Merck not only shares the same values as Mecaro but is also a partner with the economic scale to grow the business further for our clients and employees.”