Gooch & Housego PLC Acquisition of Artemis Optical (4953G)
19 July 2023 - 4:00PM
UK Regulatory
TIDMGHH
RNS Number : 4953G
Gooch & Housego PLC
19 July 2023
For release at 7.00 am 19 July 2023
Gooch & Housego PLC
("G&H" or the "Company" or the "Group")
G&H Enhances Coatings Expertise with the Acquisition of
Artemis Optical
Gooch & Housego PLC (AIM: GHH), the specialist manufacturer
of optical components & systems, announces that it has entered
into a conditional agreement to acquire the entire issued share
capital of Artemis Optical Holdings Ltd ("Artemis") for a total
consideration of up to GBP8.9 million. This acquisition further
enhances G&H's product portfolio and creates new opportunities
for vertical integration and the cross selling of our combined
capabilities .
Artemis is a thin-film coating company renowned for its
expertise in a variety of cutting-edge applications. It is
recognised as a global leader in designing advanced optical filters
for tailored electro-optical systems and laser protection, as well
as bespoke head-up display combiners. Artemis also works with its
customers to develop customised, system-enabling optical filters,
mirrors and pioneering helmet mounted display patches. Artemis'
products cater to the diverse needs of customers primarily in
Aerospace & Defence as well as in the Industrial and Life
Sciences markets.
Artemis operates from a modern facility near Plymouth in the UK
and employs around 40 people. The newly acquired site will serve as
a centre of excellence to coordinate the development of new
coatings across G&H and a hugely complementary fit to the
Group's existing extensive coating capabilities.
This acquisition, which is aligned to G&H's new strategy,
provides the Group the opportunity to offer both substrates and
coating materials of the highest quality that perfectly align with
their application or product requirements. By applying G&H's
resources, expertise, and worldwide reach Artemis will be able to
access new customers and territories for its capabilities.
Charlie Peppiatt, Chief Executive Officer of Gooch &
Housego, commented:
"The addition of Artemis' coatings expertise to G&H's
capabilities was identified in our new strategy as one of the
opportunities to deliver sustainable margin growth for the Company.
Artemis' renowned excellence in thin-film coatings complements our
existing capabilities to enable us to deliver advanced photonics
technology and unparalleled value for our customers. Together, we
are well-positioned to accelerate our customer focused innovation
plans and create a better world with photonics ."
Terms of acquisition
The total consideration payable for Artemis by G&H is up to
GBP8.9 million. This comprises an initial cash consideration of
GBP4.5 million, funded from existing resources, together with
GBP2.4 million of new G&H ordinary shares to be satisfied by
the issue of 412,088 new G&H ordinary shares. There is a
deferred contingent cash consideration of up to GBP2.0 million,
payable based upon Artemis' performance in the two years ending 31
July 2025. The acquisition is expected to complete on 21 July
2023.
In its financial year ended 31 March 2023 Artemis' revenue was
c.GBP4.3 million and adjusted EBITDA was c.GBP0.7 million. As at
the end of June 2023 Artemis had gross assets of cGBP3 million.
This acquisition is expected to be marginally earnings enhancing
in the first full financial year of G&H's ownership.
For further information please contact:
Charlie Peppiatt, Chief Executive
Officer
Chris Jewell, Chief Financial Gooch & Housego +44 (0) 1460
Officer PLC 256440
Mark Court / Abigail Gilchrist +44 (0) 20 7466
G&H@buchanan.uk.com Buchanan 5000
Christopher Baird / David +44 (0) 20 7597
Anderson Investec Bank plc 5970
Notes to editors
1. Gooch & Housego is a photonics technology business
headquartered in Ilminster, Somerset, UK with operations in the USA
and Europe. A world leader in its field, the company researches,
designs, engineers and manufactures advanced photonic systems,
components and instrumentation for applications in the Aerospace
& Defence, Industrial, Life Sciences and Scientific Research
sectors. World leading design, development and manufacturing
expertise is offered across a broad range of complementary
technologies.
2. All financial information included in this announcement is
sourced from unaudited management accounts and excludes any
specific items. This announcement contains certain forward-looking
statements that are based on management's current expectations or
beliefs as well as assumptions about future events. These are
subject to risk factors associated with, amongst other things, the
economic and business circumstances occurring from time to time in
the countries and sectors in which G&H operates. It is believed
that the expectations reflected in these statements are reasonable
but they may be affected by a wide range of variables which could
cause actual results, and G&H's plans and objectives, to differ
materially from those currently anticipated or implied in the
forward-looking statements. Investors should not place undue
reliance on any such statements. Nothing in this announcement
should be construed as a profit forecast.
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