Newport Corporation signed a definitive agreement today with Thermo Electron Corporation to purchase Spectra-Physics for $300 million, subject to a post-closing net asset adjustment.
Spectra-Physics represents substantially all of the optical technologies business of Thermo Electron. 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 deal is still subject to regulatory approval as well as other customary closing conditions, and is expected to close in July 2004, creating a company with approximately $400 million in annual sales.
For the year ended December 31, 2003, Newport reported sales of $134.8 million. Its sales for the first quarter of 2004 were $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.
The acquisition will add over 5,000 products sold by Spectra-Physics to the more than 10,000 products offered by Newport, and the combined company will have more than 2,000 employees and 15 manufacturing plants in five countries.