Newport Corp. Announces $607M Net Sales in 2016, Acquisition by MKS for $980M
IRVINE, Calif., Feb. 24, 2016 — Newport Corp. has announced an agreement with MKS Instruments Inc. in which MKS will acquire Newport for $23 per share in cash, for a total transaction value of about $980 million.
The combined company is expected to have approximately $1.4 billion in pro forma annual revenue, based on the two companies’ 2015 historical results. The transaction is expected to be accretive to MKS non-GAAP net earnings and free cash flow during the first 12 months post-closing.
The combined company expects to realize $35 million in annualized cost synergies within 18 to 36 months, and anticipates revenue synergies from the expansion of MKS Instruments’ served addressable markets and leverage of complementary sales channels.
The announcement was coupled with Newport’s full year 2015 results. The company reported net sales of $607.2 million for the year. Net income was $31.1 million or $0.78 per diluted share per GAAP. Cash generated from operations totaled $51.7 million for the year.