MKS Instruments to Buy Newport Corp. for $897 Million
23 Febbraio 2016 - 3:50PM
Dow Jones News
MKS Instruments Inc. said Tuesday that it would acquire Newport
Corp. for $897 million in cash, a move to expand its presence
beyond its core semiconductor business.
Newport shareholders will receive $23 a share, representing a
53% premium over Monday's closing price and valuing the company at
a 14-year high.
Andover, Mass.-based MKS provides instruments that measure and
control steps along the manufacturing process for products such as
semiconductor devices and flat-panel displays. Newport, based in
Irvine, Calif., is also a supplier of technology products and
services customers across the microelectronics, health sciences and
industrial manufacturing markets. The company's shares soared
during the turn of the millennium, hitting a high of about $192 a
share before collapsing with the tech bubble's burst. This year,
shares are down about 5% and closed at $15.04 on Monday.
The combination creates a supplier of "critical components and
subsystems for a diverse set of growing end markets," said MKS
Chief Executive Gerald Colella, who called the deal consistent with
the company's strategy of expanding into adjacent markets while
increasing its footprint in the semiconductor business.
The companies said the deal will close in the second quarter and
MKS expects the acquisition to add to earnings within the first 12
months post-completion. MKS also said the deal would shave $35
million off annual costs within three years of completion.
Newport is on the hook for $32.6 million in termination fees if
the deal doesn't close.
Newport shares climbed 51% in premarket trading, to $22.77.
Shares in MKS were inactive.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
February 23, 2016 09:35 ET (14:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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