ANDOVER, Mass., March 18, 2014 (GLOBE NEWSWIRE) -- MKS Instruments, Inc. (Nasdaq:MKSI), a global provider of technologies that enable advanced processes and improve productivity, today announced it has agreed to purchase the assets of Granville-Phillips, a division of Brooks Automation, Inc. (Nasdaq:BRKS), for $87 million in cash.
Granville-Phillips is a leading global provider of vacuum measurement and control instruments to the semiconductor, thin film and general industrial markets, with sales of approximately $30 million in 2013. Granville-Phillips was founded in 1954, and operated as an independent company until its acquisition by Helix Technology in 1998. It became part of Brooks Automation through the merger of Helix and Brooks in 2005.
"We are very pleased to announce this acquisition," commented Gerald G. Colella, Chief Executive Officer and President of MKS Instruments. "Granville-Phillips is an ideal complement to our vacuum gauge business, and is a business that we highly respect and know well. While we are the leader in direct pressure measurement, they are a well-regarded leader in indirect vacuum gauges, with a premium brand and an excellent reputation for quality, reliability and performance. The acquisition is well aligned with our stated strategy to grow our core semiconductor business, while diversifying into other high growth advanced markets."
Jack Abrams, Senior Vice President Global Sales, said, "We believe we have numerous opportunities to grow the Granville-Phillips business, leveraging our existing sales channels and expanding our product portfolio. We believe we can offer a broad range of advanced vacuum gauges that will be highly responsive to the needs of customers in our served markets."
"We see the potential for both revenue and cost synergies as we integrate Granville-Phillips into MKS," continued Mr. Colella. "Their profitability and cash flow metrics are aligned with our own operating model, and we expect the acquisition to be accretive to our earnings in 2014. Going forward, with the revenue growth potential that we believe we can achieve with this business, as well as operating synergies to be realized over the next few years, we expect this acquisition to meet or exceed our target return thresholds."
The acquisition is subject to regulatory approvals and other customary closing conditions and is expected to close in the second quarter of 2014.
MKS is presenting at the BofA – Merrill Lynch Smid Cap Conference at the Ritz-Carlton Boston Common, Boston, MA on Tuesday, March 18, 2014 at 3:05 p.m. (Eastern Time). The presentation will be webcast live and will be available for a limited time in the Investor Relations section of the company's website at www.mksinst.com.
About MKS Instruments
MKS Instruments, Inc. is a global provider of instruments, subsystems and process control solutions that measure, control, power, monitor and analyze critical parameters of advanced manufacturing processes to improve process performance and productivity. Our products are derived from our core competencies in pressure measurement and control, materials delivery, gas composition analysis, control and information technology, power and reactive gas generation, and vacuum technology. Our primary served markets are manufacturers of capital equipment for semiconductor devices, and for other thin film applications including flat panel displays, solar cells, light emitting diodes, data storage media, and other advanced coatings. We also leverage our technology in other markets with advanced manufacturing applications including medical equipment, pharmaceutical manufacturing, energy generation, and environmental monitoring.
This release contains projections or other forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27 of the Securities Act, and Section 21E of the Securities Exchange Act regarding MKS' future growth and the future financial performance of MKS. These projections or statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements set forth herein. Among the important factors that could cause actual events to differ materially from those in the projections or other forward-looking statements include the difficulty of integrating the operations, technology and personnel of the acquired business; failure to realize the anticipated revenues or operating synergies; failure to retain key customers or key employees; and the potential disruption of our ongoing business and distraction of management.
CONTACT: Seth H. Bagshaw Vice President, Chief Financial Officer & Treasurer Telephone: 978.645.5578
Source:MKS Instruments, Inc.