Oxford Instruments PLC Sale of Industrial Analysis business to HHT (3612D)
26 April 2017 - 4:30PM
UK Regulatory
TIDMOXIG
RNS Number : 3612D
Oxford Instruments PLC
26 April 2017
This announcement includes inside information
Release date: 7.30am on 26 April 2017
Oxford Instruments plc
Sale of Industrial Analysis business to Hitachi
High-Technologies
Oxford Instruments plc, a leading provider of high technology
solutions, information and services for industry and research,
today announces that it has agreed to sell its Industrial Analysis
business to Hitachi High-Technologies Corporation ('HHT') for a
consideration of GBP80 million on a cash and debt free basis. HHT
will acquire the companies, assets and liabilities that comprise
the Industrial Analysis business.
The Industrial Analysis business is a leading global provider of
handheld and bench-top instruments using X-ray Fluorescence (XRF),
Laser Induced Breakdown Spectroscopy (LIBS) and Optical Emission
Spectroscopy (OES) technologies for analysing materials in a broad
range of industrial applications. Headquartered in Oxford, UK, the
Industrial Analysis business has research and development and
assembly operations in Finland, Germany and China and sales and
support operations in a number of countries around the world.
The transaction is subject to regulatory approval in Austria,
confirmation of receipt by the relevant regulator of the share
transfer filing in China, and completion of a pre-sale
reorganisation to carve out the relevant businesses. Assuming
satisfaction of these conditions, the transaction is expected to
close in the second quarter of the 2017/18 fiscal year. Proceeds
will be used to reduce existing borrowings. The current Industrial
Analysis management team will transfer with the business.
In the financial year ended 31 March 2016, the Industrial
Analysis business had revenue of GBP49.5 million, adjusted
operating profit(1) of GBP3.3 million and normalised business level
adjusted EBITDA(2) of GBP8.2 million. The gross assets at 30
September 2016 were GBP35.6 million.
Ian Barkshire, Chief Executive of Oxford Instruments, said:
"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. I am confident
that our Industrial Analysis business can look forward to a bright
future as part of Hitachi High-Technologies. We look forward to
working with HHT's management team to deliver a smooth transition
of ownership.
"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".
Toshiyuki Ikeda, Senior Vice President of Hitachi
High-Technologies Corporation, said:
"We intend to contribute to society by strengthening the product
range, providing safe and secure solutions for the environmental,
food safety and security sectors. We look forward to a smooth
integration of the business and welcome the employees of Industrial
Analysis to HHT".
(1) Note: adjusted operating profit excludes amortisation of
acquired intangibles of GBP4.0 million and a non-recurring credit
of GBP0.1 million, and is after a charge of GBP0.8 million for
central costs.
(2) Note: normalised business level adjusted EBITDA comprises
operating profit before depreciation and amortisation, and excludes
non-recurring items. There are further adjustments to remove Oxford
Instruments' central costs and to normalise for other one-off
items.
Enquiries:
Oxford Instruments plc Tel: 01865 393200
Ian Barkshire, Chief Executive
Gavin Hill, Group Finance Director
MHP Communications Tel: 020 3128 8100
Rachel Hirst/Jamie Ricketts
- Ends -
Issued for and on behalf of Oxford Instruments plc
This information is provided by RNS
The company news service from the London Stock Exchange
END
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