Orbotech To Buy SPTS Tech. For Nearly $370 Mln Cash - Quick Facts

(RTTNews) - Orbotech Ltd. (ORBK) has agreed to buy SPTS Technologies Group Ltd. (SPTS), from European private equity firm Bridgepoint and others, for nearly $370 million in cash. SPTS is a U.K.-based manufacturer of etch, deposition and thermal processing equipment for the microelectronics industry. Through this acquisition, Orbotech aims to expand its electronics chain in Europe and North America and throughout the Pacific region, particularly in China.

The transaction which is expected to close during the third quarter of 2014, is projected to add to the company's earnings in 2015. In 2014, under U.K. GAAP and on a standalone basis for the full year, SPTS is expected to generate revenues of about $180 million, gross margin of nearly 48 percent of its revenues, and EBITDA margin of about 25 percent of its revenues. The acquisition's costs will be funded through a combination of cash on hand and about $300 million in debt financing under a new term loan facility.

J.P. Morgan is serving as exclusive financial advisor to Orbotech and Jefferies, while, Ernst & Young are serving as financial advisors to SPTS, in this deal.