MKS Acquires Newport for $980 Million
MKS stated that the purchase would allow it to expand into adjacent markets beyond its core semiconductor base. For process analytical applications, MKS supplies optical gas analyzers, multivariate data analysis software and MS-based residual gas analyzers. Newport provides lasers, optical components and subassemblies, as well as photonics, systems and components for a variety of end-markets, including analytical instruments. For the year ending January 2, Newport revenues were flat at $602.7 million.
Andover, MA 2/23/16—MKS Instruments, a provider of instrument, subsystems and process control solutions, has agreed to acquire Newport, a supplier of advanced technology products, for $23 per share or approximately $980 million in cash. This is a 52.9% premium over Newport’s closing price on February 22. The combined company will have $1.4 billion in pro forma annual revenues. “The combination of MKS Instruments and Newport Corporation creates a premier supplier of critical components and subsystems for a diverse set of growing end-markets, each with a common need for highly precise technology enabling solutions,” stated MKS CEO and President Gerald Colella. The transaction is expected to be accretive to MKS’s non-GAAP earnings and free cash flow in the first 12 months. The purchase will be funded with cash on hand and as much as $800 million in debt financing. The deal is expected to close in the second quarter.
