Newport to acquire optical technologies arm of Thermo Electron

Irvine, CA June 2, 2004 Newport Corporation says it has signed a definitive agreement with Thermo Electron to purchase Spectra-Physics for US$300 million, subject to a post-closing net asset adjustment. <br>
<br>
Spectra-Physics represents a large part of Thermo Electron’s optical technologies business. The transaction is subject to regulatory approval as well as other customary closing conditions, and is expected to close in July.<br>
<br>
“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,” says Robert G Deuster, chairman and chief executive officer of Newport. <br>
<br>
The acquisition is expected to create a company with approximately $400 million in annualized sales that is immediately profitable, excluding transaction-related expenses. The company indicated that it has identified significant opportunities for product, sales and cost synergies.<br>
<br>
For the year ended December 31, 2003, Newport reported sales of $134.8 million. Its sales for the first quarter of 2004 totaled $42.4 million, an increase of approximately 27% compared with the $33.3 million recorded in the first quarter of 2003. Spectra-Physics had sales of approximately $200 million in 2003 and its first quarter 2004 sales were up 16% to approximately $58 million versus approximately $50 million in the comparable quarter of 2003.<br>
<br>
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.<br>