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Oxford Instruments - Sale of Industrial Analysis business to HHT

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 £80 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 £49.5 million, adjusted operating profit1 of £3.3 million and normalised business level adjusted EBITDA2 of £8.2 million. The gross assets at 30 September 2016 were £35.6 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 £4.0 million and a non-recurring credit of £0.1 million, and is after a charge of £0.8 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
 
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