Ultra Clean Holdings, Inc, a developer and supplier of critical subsystems for the semiconductor and display capital equipment industries, has completed its previously announced acquisition of Quantum Global Technologies LLC. (QGT) for $342 million in cash, subject to customary balance sheet adjustments. UCT funded the transaction and refinanced its existing debt using cash on hand and net proceeds from a new $350 million Term Loan and a $65 million Revolving Credit Facility.

"We are very excited about the combination of UCT and QGT as it creates a premier supplier of enhanced offerings, services and capabilities to the semiconductor market, enabling us to better serve our combined IDM and OEM global customer base," said Jim Scholhamer, CEO. "Our leadership team is committed to ensuring a smooth transition and we are confident our increased scale will extend our leadership position and provide an excellent platform for profitable growth."  

As of June 29, 2018, pro forma combined revenue, net income and Adjusted EBITDA, on an LTM basis for UCT and QGT was $1.3 billion, $105 million and $167 million respectively. As of June 29, 2018, UCT's pro forma Total Debt/Adjusted EBITDA was 2.2x and pro forma Net Debt/Adjusted EBITDA was 1.5x (on an LTM basis after taking into account QGT indebtedness that will be repaid in connection with the closing of the transaction).

Barclays served as lead bookrunner for the acquisition financing. Needham & Company, LLC served as financial advisor to UCT and Davis Polk served as UCT's legal advisor. Cowen served as financial advisor to QGT and Fox Rothschild LLP served as QGT's legal advisor.