Staff Report
Published Feb. 2, 2012

Simpsonville-based Kemet Corp. said Thursday it will acquire Niotan Inc. of Nevada for $85 million.

Niotan manufactures tantalum powders and is an affiliate of Denham Capital Management LP. Niotan has been a Kemet supplier for years.

"This acquisition is in keeping with our announced strategic direction to vertically integrate operations and to better control supply sources as well as to contain our cost structure,” said Per Loof, Kemet CEO.  “Acquiring Niotan is a significant step in securing and stabilizing our tantalum powder resources. Additionally, we recently announced a comprehensive plan for sourcing conflict free tantalum ore from the Democratic Republic of Congo. We will continue to purchase a portion of our tantalum powder needs from our existing supply base.”

Kemet will pay an initial purchase price of $30 million at closing, which is expected in March. Additionally, Kemet will make deferred payments of $45 million over a 30- month period after the closing. Finally, Kemet will be required to make quarterly royalty payments for tantalum powder produced by Niotan after the closing of the transaction, in an aggregate amount equal to $10 million by the end of 2014. 

Niotan’s headquarters and principal operating location is in Carson City, Nev.