Newport Divesting Micro Robotics Systems Unit
IRVINE, Calif. & NORTH BILLERICA, Mass., Oct. 25, 2013 — Newport Corp. is selling its Micro Robotics Systems (MRSI) advanced packaging business for $6 million to a private investment group led by the local management team, the lasers and optical components maker said on Thursday.
“The MRSI business is focused on the development and manufacturing of turnkey die bonding and dispensing systems. Our focus is on providing solutions that leverage lasers, optics and photonics technologies, and the MRSI business no longer fits within Newport’s long-term strategy,” said Newport president and CEO Robert Phillippy, adding that selling the business allows the company to concentrate on areas with the greatest growth potential.
Under terms of the deal, Newport will receive $5.35 million in cash at closing and an unsecured promissory note for $650,000 with a seven-year term and an interest rate of 5 percent. Newport said the buyer is expected to sublease the facility and retain substantially all of the employees.
For the 12-month period ending Sept. 28, North Billerica-based MRSI generated approximately $12 million in revenue but did not contribute materially to Newport’s operating income or cash flow, the company said. At the end of the third quarter of 2013, MRSI’s net assets were approximately $9.5 million.
Newport acquired MRSI in 2002 (http://photonics.com/Article.aspx?AID=11956). MRSI’s assembly and dispensing systems for back-end packaging systems are used in the semiconductor, microwave communications and fiber optic communications industries. In recent years, the company has focused its development efforts on automated laser-based manufacturing systems, particularly for disk drive and solar panel manufacturing, according to Newport’s website.
Newport said it will record a charge of $4.5 million in the third quarter of 2013 related to the divestiture, including transaction costs of $400,000. The transaction, subject to normal closing conditions, is expected to be finalized before the end of the year.
For more information, visit: www.newport.com