Vishay Intertechnology Inc., an electronic parts supplier in Chester County, Pa., announced Wednesday it plans to purchase a German-based capacitor film manufacturer for $18.5 million (USD).
The companies have entered into definitive agreements for Vishay to acquire Birkelbach Kondensatortechnik GmbH and certain related assets, according to Vishay, which said that the all-cash transaction is expected to close before Dec. 31, subject to the satisfaction of customary closing conditions.
“This acquisition secures our metalized film material supply in order to meet the accelerating demand for high-voltage, high-power film capacitors used for smart grid infrastructure projects,” said Joel Smejkal, president and CEO of Vishay, one of the world’s largest manufacturers of discrete semiconductors and passive electronic components.
“Birkelbach has been a key supplier to Vishay for many years and will provide us with the capacity to deliver excellent service and product reliability to our industrial grid customers,” Smejkal added. “We intend to vertically integrate Birkelbach into our capacitor segment, invest in the company’s metalizing equipment and ensure uninterrupted supply to their customers.”
Marc Zandman, executive chairman of Vishay’s Board of Directors, the chief business development officer, and president, said Vishay has a history of making vertical integration acquisitions.
“In this case, acquiring Birkelbach ensures supply of critical material that is needed to capture an attractive growth opportunity for the company,” said Zadman.
No other details were provided by Vishay about the pending deal.