Update on sale of Cryogenics unit:
Brooks Finalizes Divestiture of Semiconductor Cryogenics Business to Atlas Copco
CHELMSFORD, Mass., July 1, 2019 / PRNewswire/ -- Brooks Automation, Inc. (Nasdaq:BRKS), a leader in automation solutions for the semiconductor manufacturing and life sciences industries, announced today that it has completed the previously announced sale of the company's Semiconductor Cryogenics business to Edwards Vacuum LLC ( a member of the Atlas Copco Group) for $675 million in cash, subject to adjustments for working capital and other items.
Proceeds from the sale, net of taxes, fees and adjustments, are estimated to be $550 million. The Company has applied $495 million cash from the proceeds to reduce debt, resulting in approximately $50 million gross debt and zero net debt on the balance sheet.
Deal Background
In August 2018, Brooks entered into a definitive agreement to sell its Semiconductor Cryogenics business to Atlas Copco. The Semiconductor Cryogenics business provides a wide range of high-performance cryogenic products for the semiconductor, display, and general vacuum industries. Brooks originally acquired the cryogenics business in its 2005 merger with Helix Technology and integrated the business into Brooks' Chelmsford, Massachusetts headquarters operations. The sale agreement provides for the transfer of the CTI pump business, the Polycold chiller business, the related services business and the company's 50% share in Ulvac Cryogenics, Inc., a joint venture based in Japan. Brooks is not transferring products or IP developed as part of its Life Sciences segment or vacuum automation portfolio in its Semiconductor Solutions segment.
I just love owning stock in a debt free company.
Especially when they have 40% margins and fast growth in not one but two business sectors.
This no doubt puts them on an acquisition hunt ( my bet is within the life sciences sector.
Solid company with a price target now of $56.00!
Bob
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