KEMET, a producer of aluminum, ceramic, electrolytic capacitors, film, paper and tantalum, has inked a contract for the acquisition of Niotan, a tantalum powder manufacturer. Niotan has been providing tantalum powder to KEMET for many years.
The CEO of KEMET, Per Loof stated that this acquisition has been done to vertically combine operations and to manage supply sources and the structure of the cost. Niotan acquisition is an important step for KEMET to enable it to secure and stabilize its tantalum powder resources. The company has recently reported a detailed plan for sourcing conflict-free tantalum ore from the Democratic Republic of Congo (DRC). KEMET will continually acquire a part of the tantalum powder demands from its current supply base. By this a supply chain has been put in place that offers customers confidence regarding the long-term use of its tantalum capacitance solutions and will accelerate the growth of KEMET’s specialty powders in the market.
KEMET will firstly pay $30 million when the transaction is completed and then make deferred payments of $45 million for a 30-month period after transaction completion.
The main operating site and headquarters of Niotan is situated in Carson City of Nevada. Niotan is the largest production site in the western hemisphere for tantalum capacitor powder and has shown superior quality of the powder.