AVX Corporation (AVX) reported that it has signed an agreement with Nichicon Corporation to purchase its Tantalum Component Division for approximately $86 million.
The all-cash purchase comprises Nichicon's tantalum component manufacturing subsidiaries located in Shiga, Japan and Tianjin, China.
The annual component sales of the Division approximate $75 million.
John Gilbertson, AVX's Chief Executive Officer and President, said "The purchase of the tantalum component operations of Nichicon enhances our leadership position in the passive electronic component industry and provides further opportunities for expansion in the Asian region and tantalum component manufacturing efficiencies."
The transaction is subject to customary closing conditions, including regulatory filings as may be required.
The transaction is expected to close before the end of the calendar year or as soon thereafter as may be possible subject to regulatory approvals.
AVX, headquartered in Greenville, South Carolina, is a leading manufacturer and supplier of a broad line of passive electronic components and related products.