MIAMI – Element Solutions, the parent company of Alpha, has acquired Kester from Illinois Tool Works for $68 million in cash. The acquisition brings together two major players in the electronics solder materials industry.

“Kester is a high-quality business with a great brand and strong legacy that brings us new capabilities and broader market access, while fitting well within our existing electronics assembly materials business,” said Benjamin Gliklich, CEO, Element Solutions. “This acquisition is a model for the prudent, highly strategic acquisitions that Element Solutions aims to pursue, alongside the judicious return of capital to shareholders in its capital allocation strategy. We funded the purchase price with cash-on-hand and without a material increase to our net debt to adjusted EBITDA ratio.”

Element also announced the repricing of its existing $744 million term loans, which reduced the applicable interest rate by 25 basis points. Gliklich  said the cumulative impact of the transactions will contribute approximately 3% to 4% accretion to adjusted EPS in 2020.

Kester was founded in 1899 as the Chicago Solder Co. and acquired by ITW in 2006. It has manufacturing facilities in the US, Singapore and Germany.

Element Solutions is the former Platform Specialty Products, a conglomerate formed in 2013 that includes the former MacDermid and Alpha brands.