Irvine, CA (PressExposure) November 16, 2011 -- Newport Corporation (NASDAQ: NEWP) today announced that it has completed the acquisition of Ophir Optronics Ltd. ("Ophir"), a global leader in precision infrared optics, photonics instrumentation and three-dimensional non-contact measurement equipment, for $8.43 per share in cash.
Robert J. Phillippy, Newport's President and Chief Executive Officer, said, "We are delighted to have Ophir join the Newport team, and we are confident that the addition of Ophir's outstanding products, technologies and customer relationships will further strengthen Newport's leadership position in the photonics industry. Ophir has a long history of strong and consistent revenue growth and profit generation, and we expect this acquisition to help Newport deliver significantly higher levels of revenue and profit in the future. We will immediately begin implementing our integration plans, and we expect the transaction to be accretive to our earnings in the fourth quarter of 2011 and thereafter. This acquisition expands our global footprint and further diversifies our end market participation. It represents an important step in the implementation of our strategy to become the world's premier source for photonics technology and products."
Ophir (www.ophiropt.com) is headquartered in Jerusalem, Israel, with manufacturing operations in Israel and the U.S. and sales offices in the U.S., Japan and Europe. For the six month period ended June 30, 2011, Ophir had revenue of $60.5 million, an 18.1% increase over the first half of 2010, and operating income of $6.8 million. Newport expects Ophir to achieve slightly higher levels of revenue and profit in the second half of 2011 compared with the first half of 2011. Ophir will operate as a wholly-owned subsidiary of Newport Corporation.
Newport also reported that it has obtained a $250 million senior secured credit facility from a syndicate of global financial institutions to provide additional funding for the Ophir transaction, the repayment of Newport's $127 million of subordinated convertible notes maturing in February 2012, and other corporate purposes. The facility consists of a $185 million term loan and a $65 million revolving line of credit, and has an initial interest rate of 2.75% over LIBOR, or 1.75% over a base rate, at the Company's option. The interest rate spreads are subject to adjustment in future periods between 2.25% and 3.0% over LIBOR, or between 1.25% and 2.0% over the base rate, based on the Company's total leverage ratio, as set forth in the Credit Agreement relating to the facility. Beginning in the first quarter of 2012, Newport will make quarterly payments of principal on the loan over its five year term, with a total of 10% of the principal being repaid in 2012 and a total of 15% of the principal being repaid in each year thereafter. The facility is subject to customary covenants, including those relating to the Company's total leverage and fixed charge coverage ratios.