FSI, Metron terminate disty deal in Europe and Asia
By Semiconductor Business News
Oct 9, 2002 (3:32 PM)
URL: siliconstrategies.com
BURLINGAME, Calif.--Metron Technology N.V. and FSI International Inc. will terminate their previously-announced distribution agreement in Europe and the Asia-Pacific region, effective March 1, 2003.
Under the new terms announced today, FSI will assume direct sales, service and applications support and logistics responsibilities for its surface conditioning and microlithography products in Europe and the Asia-Pacific region as of March 1, 2003.
Metron will continue to represent FSI products in Israel. m.FSI, a joint venture between FSI and Mitsui & Co., will continue to represent FSI products in Japan.
In conjunction with this transaction, FSI will advance up to $4.0 million to Metron on a secured basis. The advance will be applied toward the repurchase by FSI of inventory and equipment that Metron currently holds to support its obligations under the current distribution arrangement.
FSI has agreed to pay to Metron on the closing date an early termination fee of approximately $2.75 million. Subject to approval by Metron's shareholders, FSI will surrender approximately 1.154 million Metron common shares now owned by FSI in payment of this early termination fee.
It is anticipated that approximately 90 Metron employees who are currently dedicated to sales, technical service and applications engineering activities related to the distribution of FSI products in Europe and the Asia-Pacific region will transfer to FSI on the closing date.
"As a founding partner in the creation of Metron, as a Metron shareholder and as one of their key principals, we have had a long and successful relationship with Metron Technology for 28 years," said Don Mitchell, chairman and chief executive officer of FSI, a supplier of chip-equipment, based in Minneapolis, in a statement. “Due to trends in the equipment business and our own strategic reasons, we have decided to sell our products directly in Europe and the Asia-Pacific region.” |
