Dynasil Acquires RMD for $20M
WEST BERLIN, N.J., July 3, 2008 -- Photonics company Dynasil Corp. of America announced July 2 that it acquired advanced instruments maker Radiation Monitoring Devices (RMD) and assets of RMD Instruments LLC for $20 million in cash and stock.
Under the deal, Dynasil will pay $12.5 million in cash and 4.6 million shares of its stock for RMD and the assets of RMD Instruments, both of which are located near Boston.
"Adding RMD is a transformational event for Dynasil. We expect that it will more than triple our revenues and profits while our shares outstanding only approximately double, which should make it immediately accretive. It also brings us some exciting products as well as extensive technological capability that we expect will drive our future growth," said Dynasil Chairman James Saltzman.
Dynasil makes photonic products including optical materials, components, coatings and specialized instruments for medical, industrial and defense applications. It has operations in New Jersey, Massachusetts and upstate New York. Back in December, the company announced it planned to acquire a private advanced instrumentation company, but declined to provide specific details until the deal was completed (See Dynasil to Triple Under Deal)
"RMD is an attractive addition on a number of levels," said Dynasil President and CEO Craig T. Dunham. "It has a history of strong cash flow; it adds scale and extensive technology capabilities to our business portfolio; and it has exciting growth potential."
RMD is comprised of two business entities, one which performs research under government contracts such as SBIRs while the other manufactures and sells photonics related instruments and components in the medical imaging, environmental sensing and quality control instrumentation markets.
Products include hand-held x-ray fluorescence analyzers for lead paint and RoHS compliance; medical probes for cancer surgery that can dramatically reduce the number of lymph nodes removed for biopsy; a camera that integrates a visual picture with radioactive material detection for homeland security and nuclear waste cleanup applications; avalanche photodiodes for applications including medical imaging; and very high performance scintilator imaging screens for digital radiography.
The company, with a staff that includes 38 PhDs, has a significant research and development team that contracts with the National Institute of Health, the Department of Energy, the Department of Defense, NASA, NSF, the Domestic Nuclear Detection Office and the Department of Homeland Security, Dynasil said.
Former RMD owners, Gerald Entine and Jack Paster, are now major Dynasil shareholders and will stay with the company.
“Being part of the Dynasil organization fits with RMD’s continued emphasis on commercializing the new technological developments arising from its research efforts, especially our substantial set of recently issued patents on inventions ranging from improved scintillators for nuclear detectors directed towards homeland security, and medical imaging applications, high performance optical detectors for medical and space requirements and magnetic sensors arrays for nondestructive testing,” Entine said.
For more information, visit: www.dynasil.com