Many chief executives of chip equipment companies have reputations as prima donnas whose outsized egos hinder consolidation in an industry that badly needs it.

Take Brooks Automation Inc. and Helix Technology Corp. The companies' respective former CEOs, Robert Therrien and Robert Lepofsky, had talked of merging for years, but couldn't agree on who would lead the company. Brooks finally did acquire Helix for $454 million in 2005, but only after the two execs had stepped back to chairman roles at their companies.

Now, Lepofsky is back on top, with the announcement today that he'll take the CEO post at Brooks after current chief Ed Grady retires next month. He takes charge at a tough time for chip equipment makers as product demand slows. Brooks recently reported a 2.3% decrease in sequential third-quarter sales, blaming the slide on the industrywide slowdown.

With the downturn comes the opportunity for consolidation. Of course, that will depend on whether industry leaders can swallow their pride and hand over the reins to someone else —Olaf de Senerpont Domis

See Brooks Automation press release
See October 2005 story from TheDeal.com

Tags: semiconductors