UPDATE 1-Entegris to buy fellow chip industry supplier ATMI for $1.15 bln
* Entegris offers $34 for each ATMI share
* Entegris 4th-qtr adj profit/shr $0.18 vs est $0.13
* 4th-qtr revenue $186.3 mln vs est $170.6 mln
* Entregis shares up 15 pct, ATMI up 25 pct
(Adds deal details, results, share movement)
Feb 4 (Reuters) - Entegris Inc said it would buy ATMI Inc for $1.15 billion, bringing together two key suppliers of high-purity materials and packaging systems used in the manufacture of semiconductors.
Entegris's offer of $34 per share represents a premium of 26 percent to ATMI's closing price of $26.93 on the Nasdaq on Monday. Entregis's shares rose 15 percent to $11.85 in early trading, while ATMI's shares were trading at $33.76.
The combination will create a leader in advanced process materials, contamination control and wafer handling, the companies said in a statement.
The deal is expected to generate annualized cost savings of about $30 million, the companies said.
Entegris said it would fund the all-cash deal through a combination of cash-on-hand and debt financing.
Entegris also reported better-than expected fourth-quarter results on Tuesday, helped by demand for its liquid and gas filtration and purification technology.
Net income more than doubled to $23.1 million, or 17 cents per share, from $11.3 million, or 8 cents per share, a year earlier, while revenue rose 11 percent to $186.3 million.
The company earned 18 cents per share on an adjusted basis.
Analysts on average had expected earnings of 13 cents per share on revenue of $170.6 million, according to Thomson Reuters I/B/E/S.
ATMI said its income from continuing operations more than halved to $6.4 million, or 19 cents per share, in the quarter ended Dec. 31.
ATMI, which said in November that it was exploring strategic options, sold its LifeSciences business to Pall Corp for $185 million in December.
(Reporting By Sampad Patnaik in Bangalore; Editing by Ted Kerr)