BILLERICA, Mass. and TUBNEY WOODS, England, Nov. 17, 2016 /PRNewswire/ -- Oxford Instruments plc (LON: OXIG) and Bruker Energy and Supercon Technologies, Inc. (BEST), a subsidiary of Bruker Corporation (NASDAQ: BRKR), today announced that they have closed the acquisition of Oxford Instruments Superconducting Wire LLC (OST), based in Carteret, New Jersey, by BEST for a total consideration of 17.5 million US dollars in cash.
In the transaction, BEST has acquired all shares of OST from Oxford Instruments. The OST business will be part of BEST's advanced superconducting materials business, and one of two major development and production sites for low-temperature superconductors (LTS). BEST plans to optimize the OST portfolio, and integrate the OST operations into optimized BEST processes in order to continue the OST operations in New Jersey at enhanced productivity, quality and profitability levels. The acquisition of OST will expand BEST's technology portfolio with OST's unique Rod Restack Process (RRP) conductor portfolio, which is already being used by leading international fusion and high-energy physics projects that require highest magnetic fields.
Superconducting wires are used primarily in healthcare and scientific instrumentation, e.g. for magnetic resonance imaging (MRI) and nuclear magnetic resonance (NMR) magnets, as well as for high-energy physics and fusion, accelerator, confinement and detector magnets in 'big science' projects.
BEST has experienced significant growth in the LTS market for several years, following major capacity, automation and quality control investments. The acquisition of OST will enhance BEST's capabilities along the entire production chain with the goal to provide even higher performance, quality and delivery flexibility to its LTS customers. With the acquisition of OST, BEST has emerged as a world leading LTS provider with the broadest technology and product portfolio, the highest productivity, and industry-leading conductor performance and quality. BEST also has an emerging, high-temperature superconductivity (HTS) business, optimized for ultra-high field magnet applications, and based on 2nd generation HTS tape technology.
Oxford Instruments has recognized the ongoing challenges within the superconducting wire markets due primarily to pricing pressures exerted by the MRI system manufacturers and the need for larger scale operations in order to address this. After a comprehensive review of OST, Oxford Instruments has determined it no longer fits with the Group's long-term strategic vision. The decision to sell this business to BEST will allow OST to continue to provide customers with the performance and quality expected of them.
Ian Barkshire, Chief Executive Oxford Instruments, commented: "OST remains a high quality business; its acquisition by BEST will allow the realization of synergies of scale for both organizations. The business will be better positioned to ensure the ongoing success in this market and the high quality of care for employees and customers that OST is well known for."
Dr. Burkhard Prause, President and CEO of BEST, explained: "This is a clearly synergistic acquisition for BEST that expands our LTS capacity, our reach into the US market and into China, as well as into the superconductivity and magnet research community. It will allow BEST to better serve our global customers with improved response times, accelerated innovation, higher flexibility and more localized content. Our MRI OEM customers have accelerated their own innovation cycles and expect critical partners to keep up with their magnet developments. This acquisition will allow BEST and OST to improve our cost, productivity and margin position over time, in order to offer highest performance, quality and optimized total cost of ownership to our customers. OST has tremendous experience and great products, and we welcome our new colleagues to our team."
During the six month period ending September 30, 2016, OST had revenues of 19.1 million British Pounds (GBP) and operating profit of 1.1 million British Pounds (GBP). Bruker does not anticipate the acquisition to have a significant impact on Bruker's full year 2016 projected sales, operating margin expansion and non-GAAP EPS outlook.
About Bruker Corporation
For more than 50 years, Bruker has enabled scientists to make breakthrough discoveries and develop new applications that improve the quality of human life. Bruker's high-performance scientific research instruments and high-value analytical solutions enable scientists to explore life and materials at molecular, cellular and microscopic levels.
In close cooperation with our customers, Bruker is enabling innovation, productivity and customer success in life science molecular research, in applied and pharma applications, and in microscopy, nano-analysis and industrial applications, as well as in cell biology, preclinical imaging, clinical research, microbiology and molecular diagnostics. For more information: www.bruker.com.
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.
For More Information:
Dr. Burkhard Prause
President & CEO
Bruker Energy & Supercon Technologies, Inc.
Head of Investor Relations
T: +1 (978) 663-3660, ext. 1479
Oxford Instruments plc
Ian Barkshire, Chief Executive
Gavin Hill, Group Finance Director
Tel: +44 (0) 1865 393200
Rachel Hirst / Jamie Ricketts
Tel: +44 (0) 20 3128 8100
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SOURCE Bruker Corporation