Newport Corporation and Oclaro, Inc. Complete Asset Exchange Transaction
Published July 7th, 2009
Newport Corporation (Nasdaq: NEWP) today announced it has completed its previously announced exchange of assets and cash with Oclaro, Inc. (Nasdaq: OCLR). Under the terms of the transaction, Newport has acquired Oclaro’s New Focus(TM) business, which is comprised of a portfolio of high-performance photonics products that includes opto-electronics, high-resolution actuators, opto-mechanics, tunable lasers, vacuum and ultraclean solutions, and OEM-engineered solutions. Simultaneously, Oclaro has acquired Newport’s high-power diode laser manufacturing operations, located in Tucson, Arizona, and received $3 million in cash.
The majority of the opto-mechanical products being acquired by Newport are being manufactured at Oclaro’s plant in Shenzhen, China, and will be transferred to Newport’s facility in Wuxi, China, approximately doubling the manufacturing output of that facility. Most of the lasers and electro-optical products that are currently manufactured by New Focus(TM) in San Jose, California, will be transferred to Newport’s new Spectra-Physics Lasers Division facility in Santa Clara, California.
In addition, the two companies have entered into an agreement for Oclaro to be a strategic supplier of high-power diodes to Newport for incorporation into its Spectra-Physics laser products. Both companies will provide transition-related services to the other during an integration period of six to twelve months.
Robert Phillippy, Newport’s president and chief executive officer said, “We are pleased to have successfully completed this transaction and are now moving forward with implementation of our integration plan. We plan to spend $3 million to $5 million in cash to complete the integration by the end of 2009, and we expect this transaction to generate $5 million to $8 million of incremental profit for Newport in 2010.”
The company also noted that it anticipates adding approximately $7 million to $10 million in incremental sales in 2010 as a result of the transaction.
ABOUT NEWPORT CORPORATION
Newport Corporation is a leading global supplier of advanced-technology products and systems to customers in the scientific research, microelectronics, aerospace and defense/security, life and health sciences and precision industrial manufacturing markets. Newport’s innovative solutions leverage its expertise in high-power semiconductor, solid-state and ultrafast lasers, photonics instrumentation, sub-micron positioning systems, vibration isolation, optical components and subsystems and precision automation to enhance the capabilities and productivity of its customers’ manufacturing, engineering and research applications. Newport is part of the Standard & Poor’s SmallCap 600 Index and the Russell 2000 Index.
