PORTLAND, Ore., Sept. 14, 2007 -- Thermal imaging systems maker Flir Systems Inc. announced today it is acquiring a controlling interest in Cedip Infrared Systems of Croissy-Beaubourg, France.
Under the agreement, Flir said it is buying 67.8 percent of Cedip shares for about $26 in cash per share, for a total of approximately $57.1 million. The company said it will then launch a bid to buy Cedip's remaining shares in accordance with French stock market practices by the end of January 2008. The total purchase price is expected to be approximately $86.4 million, Flir said. The deal is subject to various closing conditions, including French ministry approval.
Cedip makes cooled mid- and long-wave infrared cameras for the science and security markets and stabilized gimbals for airborne commercial and government applications. Flir said acquiring Cedip gives it a manufacturing and technology base in Europe, and expands its thermal imaging and stablized camera systems portfolio by adding cooled mid-wave infrared cameras. Flir said it expects to realize some cost savings by combining the companies' distribution systems and reducing manufacturing costs by using Flir infrared sensors in some Cedip products.
After the closing, Cedip's infrared camera operations will be integrated into Flir's thermography division, while Cedip's Polytech subsidiary, a maker of mid-size gimbal systems based in Eskilstuna, Sweden, will become part of Flir's government systems division.
"The Cedip team has an outstanding reputation for designing and manufacturing high-performance cameras and will provide Flir with complementary products and capabilities to help drive growth in key market segments worldwide. I welcome Cedip's dedicated and hard working employees to Flir," said Earl Lewis, chairman, president and CEO of Flir, in a statement.
Flir said it expects the transaction will be neutral to 2008 earnings and accretive in subsequent years.
For more information, visit: www.flir.com