29-Apr-2016 - MKS Instruments, Inc.

MKS Instruments Announces Closing of Acquisition of Newport Corporation

MKS Instruments, Inc. announced the completion of its previously announced acquisition of all of the issued and outstanding common shares of Newport Corporation for $23.00 per share, or approximately $905 million, and repayment of approximately $93 million of Newport's U.S. indebtedness.

MKS Instruments funded the transaction with a combination of cash on hand and proceeds from a seven-year $780 million secured term loan, which was priced at 99% of par. The interest rate on the term loan is a floating rate based upon LIBOR plus 4.00% with a 0.75% floor on LIBOR. The term loan was rated BB by S&P and Ba2 by Moody's.

"We're excited by the combination of MKS Instruments and Newport Corporation, as it creates a premier supplier of critical components and subsystems for a diverse set of end markets, from semiconductor to life sciences, each with a common need for highly precise technology enabling solutions," said Gerald Colella, MKS Instruments' Chief Executive Officer and President. "With the strong support of the Newport management team, we have already begun to lay out our integration plans to achieve profitable and sustainable growth targets and are confident in our ability to achieve our goals."

"We are very pleased with the strong investor demand for the term loan, which we believe is a testament to our strategy to accelerate growth by expanding into adjacent markets while increasing our addressable market in our core semiconductor business," said Seth Bagshaw, Chief Financial Officer. "The loan was multiple times oversubscribed, enabling us to improve pricing and reduce our up-front cash outlay and anticipated interest expense."

Facts, background information, dossiers
  • MKS Instruments
  • Newport
  • acquisitions
More about MKS Instruments
More about Newport
  • News

    Newport Enhances Capabilities of OSM Mini-Spectrometers

    Newport Corporation has introduced two software modules that enable their OSM series mini-spectrometers to be used for quantitative colorimety or thin film thickness measurements. The new Color-Analyst and Layer Thickness Measurement modules are compatible with the OSM-Analyst PC Software, ... more

    Newport Enters Spectroscopy Market with a Series of Turnkey Spectrometers

    Newport Corporation has announced their intention to enter the spectroscopy and applied spectroscopy markets by launching the OSM Series of turnkey spectrometers, light sources and fiber based accessories. These feature-rich instruments incorporate multi-element detector arrays, optional fi ... more

  • Companies

    Newport Corporation

    From lasers and photonics instrumentation, to motion control and automation, Newport provides the full spectrum of solutions from a single source. more