Business Case Study Post Merger Synergies Lead To New Revenue

1. Executive Summary: This business case outlines how the merger of MYK and ENTG led to the immediate identification of new revenue opportunities by leveraging product synergies, enhancing customer intimacy, and aligning with technology roadmaps. Through strategic actions and cross-functional collaboration, the merged entity of Mykrolis and Entegris successfully captured a significant market share and generated substantial revenue growth immediately post-merger.

2. Situation Analysis:

• The MYK-ENTG merger aimed to leverage combined product offerings into comprehensive solutions for customers.

• One of the primary challenges post-merger was to grow revenue with top 10 customers by increasing mind share and wallet share while expanding customer touchpoints.

3. Objectives:

• Align with our customers’ technology roadmaps to develop our customer centric product-based innovative solutions.

• Drive collaboration among cross-functional teams from both companies to maximize synergies.  The cross-functional teams comprised of sales (commercial) management, applications (technical) engineers from the gaseous disciplines and liquid chemical and slurry disciplines and the in-country managers from each respective country. Together this broad, comprehensive full-court press was unequalled in the marketplace in span of expertise, scope of decision-making and support of a global supply chain resulting in total cost of ownership solutions tailored to customer needs and advancing their technology strategies.

• Advocate internally for the power and opportunity behind the merger.

• Overcome obstacles such as geographical distance, new working relationships, and goal alignment.

4. Actions Taken:

• Aligned with technology roadmaps to identify emerging market needs.

• Established collaboration teams comprising members from both MYK and ENTG, championing product-based integration globally.

• Maintained a strong presence in Asia for two years, monitoring progress and fostering hands-on collaboration.

• Forced new interactions and connections within teams, identifying adaptable and creative solution providers.

5. Obstacles Overcome:

• Overcame geographical distance and established effective working relationships across companies, engineering disciplines, and strategic initiatives.

• Aligned team goals and fostered adaptability and creativity among team members.

6. Results Achieved:

• Identified a new product opportunity in point-of-use gas monitoring analysis and dispense for dry etch processes, like wet etch dosing in wet processes.

• Secured specification positions at two OEMs (TEL and AMAT) for a $150M market niche emerging product solution opportunity.

• Captured $25 million in revenue in the TTM (within the following 12 months.) with 60%+ gross margins as the first to market.

• Prioritized new product development and customer beta-sites to ensure alignment with technology roadmaps and mutual benefits.

7. Recommendations:

• Continue leveraging product synergies and customer intimacy to drive further revenue growth.

• Maintain a customer-centric approach and focus on developing innovative solutions that align with market needs and technology trends.

• Foster ongoing collaboration and adaptability within teams to capitalize on future opportunities.

8. Conclusion: Through strategic alignment with technology roadmaps, collaboration among teams, and a customer-centric approach, the MYK-ENTG merger successfully identified and capitalized on new revenue opportunities. This case study exemplifies the power of product synergies and customer intimacy in driving business growth and market leadership in a competitive industry landscape.