IPG Reclaims Russian Subsidiary
OXFORD, Mass., June 29, 2012 — Fiber laser and amplifier maker IPG Photonics Corp. announced Friday that it spent $55.4 million in cash to buy the outstanding 22.5 percent minority interest in its Russia-based subsidiary, NTO IRE-Polus. IPG had previously sold the stake to Russian-government-owned Rusnano, which specializes in commercializing nanotechnology; the acquisition gives IPG sole ownership of NTO IRE-Polus.
IPG sold a 12.5 percent stake in NTO to Rusnano in December 2010. Rusnano bought an additional 10 percent in June 2011.
NTO IRE-Polus designs and makes finished fiber devices — including fiber optic lasers, components and test equipment — for medical and industrial markets. The company was founded in 1991 and is based in Fryazino, Russian Federation.
"The proceeds from the original investment in NTO by Rusnano allowed IPG to accelerate its investment in R&D, further develop our sales and manufacturing infrastructure in Russia, and enhance our presence in that region by leveraging Rusnano's brand and network," said IPG CEO Dr. Valentin Gapontsev. "Given the financial flexibility provided by the recent secondary offering, it is now an ideal time to regain complete ownership of our Russian subsidiary and fully benefit from the opportunities there."
The net income attributed to Rusnano's noncontrolling interest in NTO resulted in a reduction to IPG's earnings of 7 cents a share in 2011 and 1 cent per share in the first quarter of 2012.
The company expects the transaction to be accretive starting in the third quarter of 2012.
For more information, visit: www.ipgphotonics.com