Acquisition

RNS Number : 3834I

Oxford Instruments PLC

14 June 2011

 



14th June 2011

Not for distribution into the United States

Oxford Instruments acquires Omicron NanoTechnology GmbH and Omniprobe, Inc.

Oxford Instruments plc ("Oxford Instruments"), a leading provider of high technology tools and systems for industry and research, announces the acquisition of Omicron NanoTechnology GmbH (together with its subsidiaries, "Omicron") and Omniprobe, Inc. ("Omniprobe").

Omicron has been acquired for a cash consideration of €32.4 million (around £28.1 million), on a cash free debt free basis, to include land and buildings valued at €5.0 million (around £4.3 million).

Omicron is a German company based in Frankfurt, with subsidiaries in the UK, USA, Japan and France, that designs and produces advanced microscopes and chemical analysis instruments for nanotechnology research.  Its products are used by scientists for research into the properties of materials using ultra high vacuum to ensure extreme sample purity.  The microscopes can image and move individual atoms allowing the observation and manufacture of nanostructures and are used in applications such as research into next generation computer storage and processing devices.

Omicron generated Earnings Before Interest and Tax ("EBIT") of €3.2 million in the financial year ended 31 December 2010 from revenue in the same year of €37.9 million.  As at 31 December 2010, Omicron had gross assets of €29.3 million.

Omniprobe has been acquired for an initial cash consideration of US$19.2 million and a deferred element, payable in two years time on the terms set out in the agreement, of US$0.8 million (in total around £12.1 million), on a cash free debt free basis.

Omniprobe is a US company based in Dallas, which designs and produces tools giving customers nano-scale laboratory capabilities within microscopes.  Its products enable probing, manipulation, selective deposition and etch, and sample preparation at the nano-scale for customers in research sectors including nanotechnology and semiconducting devices.  A key application is the use of probes to cut out and remove ultra small pieces of a silicon wafer for quality control testing in the semiconductor industry.

Omniprobe generated EBIT of $1.7 million in the twelve months to 31 March 2011 from revenue in the same period of $9.1 million.

The combination of Oxford Instruments and these businesses strengthens the Group's Nanotechnology Tools sector, through the addition of a complementary portfolio of products and technologies.  Both acquired businesses share a similar customer base and routes to market with the existing companies in the Group's Nanotechnology Tools sector.  The acquisitions, together with the Group's existing capabilities, bring opportunities for the development of integrated new products. 

These acquisitions are expected to be adjusted Earnings Per Share* enhancing in the current year, notwithstanding the impact of the proposed equity placing, being announced separately today.

Commenting on the acquisitions, Jonathan Flint, Chief Executive of Oxford Instruments, stated:

"I'm delighted with these acquisitions, which augment our growing ability to offer a suite of tools that help our customers benefit from the opportunities offered by nanotechnology."

*Nothing in this statement should be construed as a profit forecast or be interpreted to mean that the future earnings per share, profits, margins or cash flows of Oxford Instruments will necessarily be greater than the historic published figures.

Enquiries

Oxford Instruments Plc	[phone]
Jonathan Flint
Kevin Boyd
MHP	[phone]
Rachel Hirst
Ian Payne

Notes to Editors

Oxford Instruments designs, supplies and supports high-technology tools and systems with a focus on research and industrial applications. It provides solutions needed to advance fundamental physics research and its transfer into commercial nanotechnology applications. Innovation has been the driving force behind Oxford Instruments' growth and success for over 50 years, and its strategy is to effect the successful commercialisation of these ideas by bringing them to market in a timely and customer-focused fashion. 

The first technology business to be spun out from Oxford University over fifty years ago, Oxford Instruments is now a global company with over 1500 staff worldwide and a listing on the London Stock Exchange (OXIG). Its objective is to be the leading provider of new generation tools and systems for the research and industrial sectors.

 This involves the combination of core technologies in areas such as low temperature and high magnetic field environments, Nuclear Magnetic Resonance, X-ray, electron and optical based metrology, and advanced growth, deposition and etching. Oxford Instruments' products, expertise, and ideas address global issues such as energy, environment, security and health.  

This announcement is not an offer of securities for sale in the United States or any other jurisdiction. Securities may not be sold in the United States absent registration or an exemption from registration. No public offering of securities within the United States will be conducted in connection with this transaction.

This announcement contains (or may contain) certain forward-looking statements with respect to certain of the Company's current expectations and projections about future events. These statements, which sometimes use words such as "aim", "anticipate", "believe", "intend", "plan", "estimate", "expect" and words of similar meaning, reflect the directors' beliefs and expectations and involve a number of risks, uncertainties and assumptions that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. Statements contained in this announcement regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The information contained in this announcement is subject to change without notice and, except as required by applicable law, the Company does not assume any responsibility or obligation to update publicly or review any of the forward-looking statements contained herein. You should not place undue reliance on forward-looking statements, which speak only as of the date of this announcement. No statement in this announcement is or is intended to be a profit forecast or profit estimate or to imply that the earnings of the Company for the current or future financial years will necessarily match or exceed the historical or published earnings of Oxford Instruments.

Notes to Editors

Oxford Instruments aims to pursue responsible development and deeper understanding of our world through science and technology.  We provide high technology tools and systems for industrial and research markets, based on our ability to analyse and manipulate matter at the smallest scale.Innovation has been the driving force behind Oxford Instruments' growth and success for over 50 years, and its strategy is to effect the successful commercialisation of these ideas by bringing them to market in a timely and customer-focused fashion.

The first technology business to be spun out from Oxford University over fifty years ago, Oxford Instruments is now a global company with over 1,500 staff worldwide and a listing on the London Stock Exchange (OXIG). 

Our objective is to be a leading supplier of next generation tools and systems for research and industry.  This involves the combination of core technologies in areas such as low temperature and high magnetic field environments, Nuclear Magnetic Resonance, X-ray electron and optical based metrology, and advanced growth, deposition and etching. Our products, expertise, and ideas address global issues such as energy, environment, terrorism and health and are part of the next generation of telecommunications, energy products, environmental measures, security devices, drug discovery and medical advances.

 

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