Thermo Electron Sold Optical Technologies Segment to Newport Corporation
Thermo Electron Corporation announced that it has entered into a definitive agreement for the sale of its Optical Technologies Segment, Spectra-Physics, to Newport Corporation (NASDAQ:NEWP) for $300 million, subject to a post-closing balance sheet adjustment. Thermo Electron expects to realize an after-tax gain from the transaction of approximately $.50 per share.
The purchase price of $300 million is comprised of $200 million in cash, $50 million in a five-percent note due in 2009, and $50 million in Newport Corporation common stock. Thermo will retain ownership of a small business in the Optical Technologies Segment that makes highly technical digital cameras used in Thermo?s Scientific Instruments Division. Guy Broadbent, president of Spectra-Physics, will remain with Thermo as a member of its executive team. Spectra-Physics reported $212 million in revenues in 2003, representing 10 percent of Thermo's overall revenue for the year.
"The sale of Spectra-Physics further sharpens Thermo's focus as the world's leading analytical instruments provider," said Marijn E. Dekkers, president and chief executive officer of Thermo Electron Corporation. "Going forward, we can now commit all of our energies on providing instruments, scientific equipment, consumables, services, and software solutions to life sciences and industrial laboratories, as well as various process industries. We remain very excited about our business potential and the opportunity to grow Thermo, creating greater value for our shareholders, customers, business partners, and employees.
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