McLEOD COUNTY, MN – TDK and Hutchinson Technology Inc. (HTI) today jointly announced that they have entered into a definitive merger agreement under which TDK will acquire all of the outstanding shares of common stock of HTI.
“This transaction represents a compelling opportunity for Hutchinson Technology shareholders, employees, customers, and suppliers,” HTI President and Chief Executive Officer Rick Penn stated in a press release. “By combining the market position, resources, and scale of TDK with our precision component manufacturing capabilities, we can ensure that our customers have access to the advanced technology they need. We are pleased to become part of TDK, a premier company in the electronics industry.”
The transaction, which has been unanimously approved by each company’s board of directors, is currently expected to close in the first calendar quarter of 2016, subject to HTI shareholders’ approval, regulatory approvals, and other customary closing conditions.
TDK Corporation is a leading electronics company based in Tokyo, Japan. It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK’s portfolio includes electronic components, modules, and systems marketed under the product brands TDK and EPCOS, power supplies, magnetic application products as well as energy devices, flash memory application devices, and others.
TDK focuses on demanding markets in the areas of information and communication technology and consumer, automotive, and industrial electronics. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2015, TDK posted total sales of $9 billion and employed about 88,000 people worldwide.
HTI’s board of directors recommends that shareholders vote to approve the transaction. A press release stated that Hutchinson Technology shareholders will receive up to $4 per share.
The press release did not state what the merger will mean for employees of HTI, which has locations in Hutchinson, Eau Claire, WI, and Thailand. About 600 people are employed at the Hutchinson plant.