SOMERSET, England, July 14, 2008 – Gooch & Housego, a maker of optical components and systems, announced it will acquire General Optics from GSI Group for $21 million in cash.
As a volume manufacturer of optical components and coatings, General Optics (a member of the GSI Group) is a key supplier to the aerospace and defense sector, and also serves the telecommunications, semiconductor, metrology, biomedical and research markets. The company also supplies ring laser gyroscope (RLG) mirrors and frames to manufacturers of inertial navigation systems.
According to representatives of Gooch & Housego, they believe the acquisition will increase the group’s exposure to the important US precision optics market, the aerospace and defense market, will enhance the capabilities of the group through the addition of key enabling technology, and bring long standing relationships with customers giving long-term revenue visibility.
“General Optics is a business that Gooch & Housego has always held in high regard. Its pre-eminent position in superpolished optics is highly complementary to our precision optics manufacturing capabilities in Ilminster, UK, but extends our reach by providing us with access to the important US aerospace and defense sector as well as a presence in what is the world's largest market for high-end optics,”
said Gareth Jones, chief executive of Gooch & Housego.
General Optics, which was founded in 1974, was acquired by GSI Group in 2000. It operates from manufacturing facilities located in Moorpark, Calif., where it employs 87.
Funding of the acquisition consideration is being provided by the company's bankers through secured debt facilities. The acquisition is expected to be immediately accretive
and earnings enhancing (excluding the impact of the amortisation of acquired intangible assets).
The sale is expected to close within 60 days, pending regulatory approval.
For more information, visit: www.goochandhousego.com