Disposal of Oxford Instruments Superconducting Wire LLC
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.”
Oxford Instruments plc
Tel: 01865 393200
Ian Barkshire, Chief Executive
Gavin Hill, Group Finance Director
Tel: 020 3128 8100
Rachel Hirst/Jamie Ricketts