• A franchise-defining semiconductor acquisition – With the ¥9.4bn acquisition of VTEX, KITZ becomes the clear global number two in semiconductor vacuum valves, with ~9% market share and the leading supplier within the booming Japanese Wafer Fab Equipment (WFE) supply chain. While the market may view this as a minor bolt-on acquisition, we believe it is a franchise-defining transaction of significant strategic importance. For the global WFE industry, KITZ is now a viable alternative to the dominant industry leader, which holds a 71% market share. WFE OEMs have a clear incentive to qualify a credible second source, and KITZ is now positioned to be that supplier. Furthermore, KITZ acquired VTEX when earnings were near a cyclical trough, leaving meaningful upside as record AI-driven semiconductor capex lifts WFE spending. We believe VTEX to be an important acquisition that meaningfully accelerates the growth of KITZ’s semiconductor equipment business, which is 13.5% of revenue.
