Last checked at 18 Nov 2016 07:00
Release date: 18 November 2016
Oxford Instruments plc
Disposal of Oxford Instruments Superconducting Wire LLC ("OST")
Oxford Instruments plc, a leading provider of high technology tools and systems for industry and research, today announces the disposal of Oxford Instruments Superconducting Wire LLC ("OST") to Bruker Energy and Supercon Technologies Inc ("BEST"), a subsidiary of Bruker Corporation, for a consideration of $17.5 million, payable in cash. In the transaction, BEST has acquired the entire share capital of OST from Oxford Instruments.
OST supplies world-leading superconducting wire for use in MRI scanners and other medical and scientific applications; it is located in Carteret, New Jersey, USA. The business was previously part of Oxford Instruments' Industrial Products division.
In the year ended 31 March 2016, OST had revenues of £42.4 million and achieved an operating profit of £3.4 million. In the six months to 30 September 2016, OST had revenues of £19.1 million and achieved an operating profit of £1.1 million. The gross assets of OST at 31 March 2016 were £19.0 million.
Oxford Instruments has previously reported challenges within the superconducting wire markets due primarily to pricing pressures exerted by the MRI system manufacturers and reduced demand for wire from OEM customers. The disposal represents a further step in the Group's strategy of actively managing its portfolio.
Ian Barkshire, Chief Executive of Oxford Instruments said "After a comprehensive review of our portfolio, the Board has determined that our Superconducting Wire business is no longer core to the Group's long-term strategic vision. The divestment will allow increased focus across the Group on our chosen market segments and the cash proceeds will enable us to reduce our net debt, in line with our strategy to deliver enhanced shareholder value.
"OST is a high quality business and we believe that as part of BEST, it will benefit from the realisation of synergies and the scale of BEST's expertise in low-temperature superconductors. This will ensure that the business continues to provide customers with the highest quality products and fosters the exceptional skills of its talented workforce."
Enquiries:
Oxford Instruments plc Tel: 01865 393200
Ian Barkshire, Chief Executive
Gavin Hill, Group Finance Director
MHP Communications Tel: 020 3128 8100
Rachel Hirst/Jamie Ricketts
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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 is now a global company and is listed on the London Stock Exchange (OXIG). Its 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 and high magnetic field 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.