ROBO: Eshed Robotec Announces Acquisition of U.S. CNC Producer
ROSH HA'AYIN, Israel, Oct. 30 /PRNewswire/ -- Eshed Robotec (1982) Ltd.
(Nasdaq: ROBO), today announced that its wholly owned US subsidiary, Eshed
Robotec Inc., has signed an agreement for the purchase of the assets and
business of Light Machines Corporation, a Manchester, NH, based division of
Davenport Industries LLC.
Light Machines develops and produces benchtop computerized numerical
control (CNC) milling and turning machines. The company's products also
include CAD/CAM software and training curriculum. Light Machines had sales of
approximately $7 million in 1999.
Noam Kra-oz, joint managing director of Eshed Robotec (1982) Ltd. stated
that the synergies in services and markets between Light Machines and Eshed's
educational division will enhance the division's operations through an
expanded product line, increased sales, and improved market presence. "Given
the extensive synergies with Light Machines, this acquisition is in line with
the Eshed Robotec group's strategy to maximize the value of each of its
divisions. We look forward to reaping the benefits," continued Mr. Kra-oz.
"Our educational division yielded approximately $12 million in revenue for
1999, and we believe that this acquisition will result in significant
improvement in sales for 2001 and the future."
Eshed Robotec Inc. will purchase Light Machines' assets and business for
$2.4 million in cash. The transaction is expected to close on
October 31, 2000.
Light Machines' operations will be assumed by Eshed Robotec Inc. Both New
Hampshire-based companies have been cooperating in a joint marketing venture
for more than three years through intelitek, the marketing division of Eshed
Robotec Inc.
Eshed Robotec engages in three business sectors. The first focuses on
high tech ventures such as Memcall, a smart memory technology, and Swap
Station (http://www.SwapStation.com), an Internet Swap engine technology. The
second is comprised of Yaskawa Eshed Technology (YET), a joint venture with
Japan's Yaskawa Electric Corp., which provides industrial motion controls and
robots. The third sector is devoted to Eshed Robotec's learning products.
Eshed Robotec is a world leader in automation training. The Company is market
driven, deriving its growth from technological leadership, strong partnerships
and management expertise. For more information, visit eshed.com.
To the extent that this press release discusses expectations about market
conditions or about market acceptance and future sales of the Company's
products, or otherwise makes statements a about the future, such statements
are forward-looking and are subject to a number of risks and uncertainties
that could cause results to differ materially from the statements made. These
factors include the rapidly changing technology and evolving standards in the
industries in which the Company and its subsidiaries operate, risks associated
with the acceptance of new products by individual customers and by the market
place and other factors discussed in the business description and management
discussion and analysis sections of the Company's Annual Report on Form F-20.
SOURCE Eshed Robotec (1982) Ltd.
-0- 10/30/2000
/CONTACT: Noam Kra-oz of Eshed Robotec (1982) Ltd., +972-3-900-4121,
nko@robotek.co.il; or Rachel Levine of The Anne McBride Co., 212-983-1702,
rlevine@annemcbride.com, for Eshed Robotec/
/Web site: eshed.com
(ROBO) |
