BOC Edwards Buys FSI Chemical Management Division

FSI International (Minneapolis) has sold its Chemical Management Division (CMD) to The BOC Group (Surrey, U.K.) for approximately US$38 million. CMD will become part of BOC Edwards, a BOC business unit that supplies a broad range of products for the semiconductor industry, including bulk and process gases, vacuum and abatement systems, slurry systems, gas cabinets, nitrogen generators, and design and site-management services.

CMD includes operations in Chaska, MN; Hollister, CA; Newhaven, England; and Kyungui-do, Korea. The sale is subject to certain post-closing adjustments. The formal agreement to sell the division was announced on June 9, 1999.

Pre-tax gain on the sale will be approximately US$25 million. FSI expects to use the net proceeds from the transaction for working capital and to fund future investments in complementary businesses, products, or technologies.

"The divestiture of CMD allows FSI to move forward with its strategy to focus on microlithograpy and surface conditioning process technology products, programs and services," says Joel Elftmann, FSI chairman and CEO.

To support this strategy, the company's Microlithography Division recently introduced a system that addresses the needs of the low-k, spin-on dielectric segment of the semiconductor equipment market. In addition, the company recently announced its intent to expand into immersion cleaning, utilizing the technology received from the pending acquisition of YieldUP International. With this technology, the Surface Conditioning Division will be able to deliver total cleaning solutions to customers.

FSI International is a global supplier of equipment used to manufacture microelectronics. The company develops, manufactures, markets, and supports products used in the technology areas of surface conditioning, microlithography, and the spin-on dielectric market. FSI International's customers include microelectronics manufacturers located throughout North America, Europe, Japan, and the Asia-Pacific region.

For more information, call Laurie Walker at FSI International at 612-448-8066.