ON Semiconductor? Completes The Acquisition Of Cherry Semiconductor
Phoenix, AZ, April 4, 2000 - ON Semiconductor? today announced that it has successfully completed the acquisition of the Cherry Corporation's (NASDAQ: CHER) semiconductor subsidiary for $250 million. The Cherry Semiconductor unit will be integrated with ON Semiconductor. "We welcome the employees of Cherry Semiconductor to the ON Semiconductor team," said Steve Hanson, Chief Executive Officer and President of ON Semiconductor. "Together we can provide an even higher level of support to wireless, automotive and computer customers with our combined engineering expertise and power management product portfolio." The purchase includes all of the worldwide business and assets of Cherry Semiconductor. The Cherry Semiconductor plant in Greenwich, Rhode Island will operate as an essential part of the growth strategy in power management of ON Semiconductor's analog business. Activity has been initiated to integrate Cherry Semiconductor personnel into ON Semiconductor including sales, applications and design engineers in the US, Europe and Asia.
Cherry Semiconductor's portfolio consists of analog integrated circuit (IC) solutions for the power management and automotive markets. The addition of Cherry Semiconductor's sales of approximately $130 million with ON Semiconductor's reported pro forma net product revenues of $1.62 billion combine to equal approximately $1.75 billion in sales in 1999. The Cherry Semiconductor acquisition was financed by ON Semiconductor with cash on hand, proceeds from our existing revolving credit facility, and an additional tranche under the company's senior secured bank facilities.
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