SPTS sells Thermal Products Business to SPP Technologies
Orbotech Ltd. today announced that SPTS Technologies Group Ltd. (SPTS), an Orbotech company and supplier of advanced wafer processing solutions for the global semiconductor and related industries, has sold its Thermal Products business to SPP Technologies Co, Ltd. (SPT), a subsidiary of Sumitomo Precision Products Co., Ltd. SPT specializes in the production, sales and support of micro electromechanical systems (MEMS) and semiconductor related process equipment. The transaction includes sale of all thermal product lines and virtually all worldwide assets of SPTS's Thermal Product business, and will involve approximately fifty SPTS employees worldwide, who are currently engaged in the Thermal Products business, becoming employees of SPT.
"Historically, the Thermal Products business has been part of SPTS's growth and success, with a range of production-proven vertical batch furnaces that continue to be the process tools of choice at leading semiconductor fabs around the world. Divestment at this time, however, will benefit SPTS by enabling us to focus resources on our core Advanced Packaging, MEMS, RF and Power devices businesses. We believe this sale will provide new opportunities for the Thermal Products business under the ownership of SPT, and we wish them continued achievement and success," commented Kevin Crofton, President of SPTS and Corporate Vice President at Orbotech.
"This acquisition will allow us to expand the product portfolio that we offer our customers, create a footprint in the global semiconductor capital equipment industry and establish a worldwide presence for our company. We expect the Thermal Products business to contribute to the success of SPT and look forward to new product development activities related to this business in its current and adjacent markets," added Toshihiro Hayami, President of SPT.
SPT acquired the assets of the Thermal Products business based on a valuation of approximately $28 million, comprised of $22 million in cash plus approximately $6 million in accounts receivable. Half of the cash was paid on completion and the balance will be paid in 2016, without any performance conditions. Orbotech intends to use the net proceeds to repay a portion of the amount outstanding under its credit facilities. The sale does not materially affect Orbotech's expectations for its financial performance in the second half of 2015 or its long term business model.