Brooks Automation – BRKS – To Acquire Crossing Automation Inc.
Nasdaq:BRKS) announced that it has entered into a definitive agreement to acquire Crossing Automation Inc. Crossing, based in Fremont, California, provides automation products primarily to global Semiconductor Front End markets. The cash purchase price is $63 million, subject to adjustment for actual working capital at closing. The Company expects to complete the acquisition by the end of this month upon satisfaction of customary closing conditions.
For the trailing twelve months ended September 30, 2012, Crossing had revenues of approximately $51 million, which generated operating profits of approximately $3 million with gross margins of approximately 41%.
Steve Schwartz, President & CEO of Brooks, stated, “Crossing has a product and customer franchise that is complementary to Brooks and the acquisition will meaningfully expand Brooks’ capabilities in atmospheric automation. A significant proportion of Crossing’s revenues are generated from product and service sales to end users resulting in additional diversification of our served customer base. Crossing’s leading linear atmospheric solutions combined with Brooks’ existing systems will allow us to develop best of breed systems that address our customers’ cost and productivity requirements. This transaction furthers our strategy of gaining share in semi-conductor markets as we at the same time expand our presence in adjacent markets and Life Science Systems markets.”
“We are excited to welcome some significant talent into Brooks as a result of this transaction and seek to maximize the technical capabilities of the combined companies while generating significant cost synergies through the integration process. With those synergies, we project meaningful accretion in fiscal 2013 and beyond,” continued Dr. Schwartz.
The Company indicated that further details related to the acquisition and the integration goals will be provided on the regularly scheduled earnings call on November 8, 2012.
About Brooks Automation, Inc.- BRKS
Brooks (BRKS) is a leading worldwide provider of automation, vacuum and instrumentation solutions for multiple markets including semiconductor manufacturing, life sciences, and clean energy. BRKS technologies, engineering competencies and global service capabilities provide customers speed to market, and ensure high uptime and rapid response, which equate to superior value in their mission-critical controlled environments. Since 1978, BRKS have been a leading partner to the global semiconductor manufacturing market and through product development initiatives and strategic business acquisitions; BRKS have expanded its reach to meet the needs of customers in the life sciences industry, analytical & research markets and clean energy solutions. Brooks is headquartered in Chelmsford, MA, with direct operations in North America, Europe and Asia.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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