8-KMaterial AgreementsFinancial EventsExhibits & Filings

ENTEGRIS INC 8-K Report, Material Agreement (Dec 5, 2005)

Filed December 5, 2005For Securities:ENTG

Summary

Entegris, Inc. (ENTG) has filed an 8-K report detailing two significant events. First, the company entered into an Amended and Restated Membrane Manufacture and Supply Agreement with Millipore Corporation. This agreement extends their existing arrangement for manufacturing membrane products at Millipore's facility in Bedford, MA, for Entegris' own use and for sale to Millipore, through December 31, 2010. This extension provides operational clarity and continued strategic partnership. Second, Entegris announced the closure of its manufacturing plant in Bad Rappenau, Germany. Production from this facility will be relocated to the company's U.S. and Asian plants. This strategic decision is expected to incur approximately $6.5 million in expenses, comprising $3.5 million in severance and closure costs and $3.0 million in asset write-offs. Notably, the company anticipates no further cash expenditures beyond these reported amounts.

Key Highlights

  • 1Entegris entered into an Amended and Restated Membrane Manufacture and Supply Agreement with Millipore Corporation, extending the arrangement until December 31, 2010.
  • 2The agreement ensures continued manufacturing of membrane products at Millipore's Bedford, MA plant for Entegris' use and sales to Millipore.
  • 3Entegris will provide guaranteed capacity to support Millipore's membrane purchases under the new agreement.
  • 4The company announced the closure of its manufacturing plant in Bad Rappenau, Germany.
  • 5Production from the German plant will be relocated to existing facilities in the United States and Asia.
  • 6The plant closure is expected to result in approximately $6.5 million in expenses, including $3.5 million for severance/closure costs and $3.0 million for asset write-offs.
  • 7The Bad Rappenau plant closure is separate from the recent merger with Mykrolis Corporation.

Frequently Asked Questions

This agreement is significant because it extends a crucial manufacturing and supply arrangement between Entegris and Millipore until December 31, 2010. It ensures continued production of membrane products and guarantees capacity, providing operational stability and reaffirming the strategic partnership.

Entegris is closing the Bad Rappenau plant as part of a strategic relocation of production to its existing manufacturing facilities in the United States and Asia. This move is intended to optimize manufacturing operations.

The closure is expected to result in approximately $6.5 million in total expenses. This includes $3.5 million for out-of-pocket expenses such as severance and other closure costs, and $3.0 million for asset write-offs. Entegris expects no further cash expenditures beyond these amounts.

No, the company explicitly stated that the closure of the Bad Rappenau plant is unrelated to the merger with Mykrolis Corporation, which became effective on August 6, 2005.