Newport Is A Classic Case Of Growth At A Reasonable Price
John Leonard, CFA
John Leonard, CFA
Wed, Mar. 16, 4:54 PM
- Coherent (NASDAQ:COHR) is acquiring industrial laser peer Rofin-Sinar (NASDAQ:RSTI) for $942M, or $32.50/share, in cash. The price represents a 42% premium to Rofin's Wednesday close.
- The deal is expected to close in 6-9 months, provided shareholders and regulators approve. For reference, Coherent closed today with a $2.06B market cap.
- Coherent plans to finance the purchase via existing cash and committed debt financing from Barclays. CEO John Ambroseo: "The combination of Coherent and ROFIN represents a unique opportunity to strengthen Coherent's position in materials processing. The addition of ROFIN's complementary portfolio will build on Coherent's capabilities as a world leader in laser and photonics-based technology and solutions and create meaningful value for our stockholders." Rofin CEO Thomas Merk declares the two companies to be "highly complementary both technologically and geographically."
- The deal is expected to be accretive to EPS in its first full year after closing, and produce $30M/year in synergies within 18-24 months of closing. It could stoke M&A hopes for peers IPG Photonics (NASDAQ:IPGP), Newport (NASDAQ:NEWP), and GSI Group (NASDAQ:GSIG).
- COHR and RSTI appear to be halted. CC at 5PM ET (webcast).
- Update (5:43PM ET): After coming off a halt, Rofin-Sinar is up 44% after hours to $33.00. The price suggests some investors are betting on a higher bid.
Tue, Feb. 23, 7:38 AM
- MKS Instruments (NASDAQ:MKSI) agrees to acquire Newport (NASDAQ:NEWP) for $980M in cash, with the $23/share offer representing a 53% premium to yesterday's closing price.
- MKS says the combined company will have ~$1.4B in pro forma annual revenue, and should realize $35M in annualized cost synergies within 18-36 months.
- After a halt, NEWP +50.2% premarket.
Newport Corp. manufactures and trades products and solutions for scientific research, microelectronics, security, life and health sciences, and industrial markets. It operates through the following segments: Photonics, Lasers, and Optics. The Photonics segment produces photonics instruments,... More
Industry: Scientific & Technical Instruments
Country: United States
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