Newport signs deal to buy Spectra-Physics
Newport supplies a wide range of advanced-technology products and systems, including automated assembly and test systems used in the manufacture of electronic and communication devices (see, for example, Newport adds feature alignment to die bonder).
Spectra-Physics is one of the world’s leading suppliers of lasers, and has a vertically integrated manufacturing facility in Tuscon, Arizona that produces high-power laser diode bars and modules. Spectra-Physics Semiconductor Lasers was formerly known as Opto Power Corporation (see Opto Power becomes Spectra-Physics Semiconductor Lasers).
The purchase price is comprised of $200 million in cash, $50 million in Newport Corporation common stock, and a $50 million promissory note bearing 5% interest and payable in 2009. The transaction is subject to regulatory approval and is expected to close in July 2004.
“This unique combination brings together what we believe are the technology leader in lasers and the technology leader in photonics instrumentation, motion control and automation to create a photonics industry powerhouse,” said Robert Deuster, Newport’s chairman and CEO. “The combined company will become the premier global resource for customers who need to make, manage and measure light.”
The acquisition is expected to create a company with approximately $400 million in annualized sales. Newport reported sales of $134.8 million in 2003, while Spectra-Physics had sales of approximately $200 million.
Newport’s sales for the first quarter of 2004 totaled $42.4 million, an increase of approximately 27% compared with the $33.3 million in the first quarter of 2003. Spectra-Physics’ first quarter 2004 sales were up 16% to approximately $58 million versus approximately $50 million in the comparable quarter of 2003.
Deuster added that he expected the transaction to create many new and expanded opportunities for Newport in markets for photonics, biophotonics and nanotechnology. The acquisition will add over 5,000 products sold by Spectra-Physics to the more than 10,000 products offered by Newport. The combined company will have more than 2,000 employees and 15 manufacturing plants in five countries.
