Last checked at 1 May 2015 07:00
Release date: 1 May 2015
Oxford Instruments plc
Acquisition of Medical Imaging Resources, Inc.
Oxford Instruments plc, a leading provider of high technology tools and systems for industry and research, today announces the acquisition of Medical Imaging Resources, Inc. (MIR).
Founded in 1990 in Ann Arbor Michigan by CEO John Vartanian, MIR specialises in the build, lease and service of mobile medical imaging labs ("mobiles").
The mobile labs are built in MIR's factory, with Magnetic Resonance Imaging (MRI) and Computed Tomography (CT) systems from Siemens, GE, Philips and Toshiba. These are leased to customers across the USA. MIR is also responsible for servicing its mobiles. Customers include hospitals and clinics that need additional capacity or that wish to trial MRI or CT machines without committing to the infrastructure and cost associated with a permanent unit.
MIR will form a part of OIHealthcare, within the Group's Service sector, which already services GE MRI and CT machines in the USA. There are a number of synergies with OIHealthcare:
· This will be a significant step to making OIHealthcare a multi-skilled independent service provider able to support large individual service contracts;
· Access to OIHealthcare's parts and its purchasing power for complete systems will lower MIR's operating costs;
· There will be overheads savings in those areas where duplication is eliminated;
· MIR currently sub-contracts a significant portion of the service work for its mobiles. OIHealthcare staff are located in numerous states and once trained will take over the work and will be able to bring the margin in-house.
Consideration, which will be satisfied from existing facilities, comprises $10.4 million (c. £6.8 million) on completion followed by a further $10.1 million (c. £6.6 million) earn-out payable one year later. MIR has approximately $3.0 million (c. £2.0 million) net debt at completion.
In the year to 31 December 2014, MIR had sales of $16.6 million (c. £10.8 million), profit before tax of $2.8 million (c. £1.8 million) and EBITDA of $5.6 million (c. £3.6 million). At 31 December 2014, MIR had gross assets of $9.4 million (c. £6.1 million).
Jonathan Flint (Chief Executive) and Kevin Boyd (Finance Director) will host a conference call for analysts and investors on this announcement at 9:30 am (UK time), today 1 May. To join the call, please use the dial-in numbers below:
Dial: +44 (0)20 3139 4830
PIN: 89662683#
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Enquiries:
Oxford Instruments plc Tel: 01865 393200
Jonathan Flint, Chief Executive
Kevin Boyd, Group Finance Director
MHP Tel: 020 3128 8100
Rachel Hirst / Jack Holden
Issued for and on behalf of Oxford Instruments plc
Notes to Editors
About Oxford Instruments plc
Oxford Instruments designs, supplies and supports high-technology tools and systems with a focus on research and industrial applications. Innovation has been the driving force behind Oxford Instruments' growth and success for over 50 years, and its strategy is to effect the successful commercialisation of these ideas by bringing them to market in a timely and customer-focused fashion.
The first technology business to be spun out from Oxford University, Oxford Instruments objective is to be the leading provider of new generation tools and systems for the research and industrial sectors with a focus on nanotechnology. Its key market sectors include nano-fabrication and nano-materials. The company's strategy is to expand the business into the life sciences arena, where nanotechnology and biotechnology intersect.
This involves the combination of core technologies in areas such as low temperature, high magnetic field and ultra high vacuum environments; Nuclear Magnetic Resonance; x-ray, electron, laser and optical based metrology; atomic force microscopy; optical imaging; advanced growth, deposition and etching.
Oxford Instruments aims to pursue responsible development and deeper understanding of our world through science and technology. Its products, expertise, and ideas address global issues such as energy, environment, security and health.