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Kemet Acquires Foil Facility

GREENVILLE, S.C. — KEMET Corporation (NYSE: KEM), a leading manufacturer of tantalum, ceramic, aluminum, film, paper and electrolytic capacitors, today announced its acquisition of Cornell Dubilier Foil, LLC (“CDF”), a Tennessee based manufacturer of foils utilized as a core component in the manufacture of electrolytic capacitors. The total consideration paid in the transaction is $15 million.

“This acquisition is a first step in the strategic direction we outlined recently to find opportunities to vertically integrate our operations to better control our supply sources and our cost structure,” said Per Loof, Chief Executive Officer of KEMET. Chuck Meeks, KEMET's Executive Vice President, Ceramic, Film and Electrolytic Business Group, said, “The capability associated with this facility provides tremendous synergy with our existing capacitor operations, and fits well with our long-term strategy to increase the level of vertical integration in our material supply chain.”

Established in 1990, the facility was previously a subsidiary of Panasonic Electronic Devices Corporation of America. Most recently, CDF was a subsidiary of Cornell-Dubilier Marketing, Inc. (“CDM”) and an affiliate of the Cornell group of companies. The foil facility is one of the largest of its kind in North America. The primary focus of the operations going forward will be the formation of aluminum foil to support KEMET's Aluminum Electrolytic Capacitor operations, as well as the formed foil needs of the Cornell-Dubilier affiliated companies and the existing customer base of the foil facility. As part of the transaction, the Cornell group of companies will retain a relationship with KEMET under a long-term supply agreement.

“We viewed KEMET as our most strategic buyer for this subsidiary with the capabilities to maintain the high quality of material that both of us require for our finished products, ” said Jim Kaplan, President of CDM. “Through this transaction we have established a very good working relationship with KEMET and we look forward to continuing it under our supply agreement,” continued Kaplan.

Winchester Capital acted as advisor to KEMET on the transaction.

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