Moody's may upgrade Versum

Moody's Investors Service said it placed Versum Materials, Inc.'s corporate family rating at Ba2 under review for upgrade following news that Versum and Entegris Inc. have agreed to merge in an all-stock transaction.

Each share of Versum will be exchanged for 1.12 shares of Entegris stock valuing the transaction at about $9 billion, Moody's said.

Upon completion of the merger, Entegris shareholders will own 52.5% and Versum shareholders will own 47.5% of the combined company, the agency noted. The company will be called Entegris.

The merger creates a much larger company with substantially more financial flexibility, Moody's said in a press release.

The combination of complementary product portfolios creates a leading supplier of consumables to the semiconductor industry, the agency said.

The upgrade review will evaluate the improved credit profile of the combined companies and their substantial cash balance, Moody's said.

Successful completion of the merger is credit positive as it will create a leading supplier to the semiconductor industry with increased scale, a broader range of product offerings and geographical diversity, the agency said.

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