London, UK 4/26/17; Tokyo, Japan 4/26/17—Oxford Instruments (OI) a provider of high-technology solutions, has agreed to sell its Industrial Analysis business to Hitachi High-Technologies (HHT) for £80 million ($116 million at £0.69 = $1) excluding cash and debt. The Industrial Analysis business, comprised of XRF, LIBS and OES technologies, recorded £49.5 million ($75.0 million at £0.66 = $1) in sales in fiscal 2016 and an adjusted operating profit of £3.3 million ($5.0 million). “The sale of the Industrial Analysis business follows the continued strategic review of our portfolio and is a key element in the ongoing transformation of Oxford Instruments,” stated OI Chief Executive Ian Barkshire. “This transaction creates a more focused NanoTechnology Tools and Service business with some improvement to operating margin, and will bring net debt to EBITDA leverage after completion to below one times on a pro-forma basis for the year ended 31 March 2017.” HHT commented that the acquisition adds handheld atomic spectroscopy systems to its Scientific Systems Business portfolio and broadens its sales network. According to HHT, revenues for the acquired business declined 7.1% in fiscal 2016 to ¥6,790 million ($48.5 million at ¥140 = $1). The Industrial Analysis management team will join Hitachi High-Technologies. The transaction is expected to close in July.

Oxford Instruments cited challenging end-markets, notably metals, for slower growth for its Industrial Technology business in fiscal 2016. Under Mr. Barkshire, who took over as CEO a year ago (see IBO 4/30/16), OI has also divested its Superconducting Wire business (see IBO 11/30/16). In 2015, the company sold its Austin Instruments cryopump business (see IBO 12/31/15). In the atomic spectroscopy market, HHT currently offers benchtop XRF, atomic absorption spectrometers, ICP, ICP-MS systems as well as inorganic analyzers. HHT and OI compete in the benchtop XRF market.