Irvine-based Newport Corp. has agreed to a $980 million all-cash sale to Massachusetts-based MKS Instruments. The deal is expected to close in the second quarter.
MKS said in a news release that it intends use up to $800 million in debt to acquire the provider of lasers, precision optics and photonics to the defense, security and scientific research sectors, and will likely expand MKS’ market reach by $4.8 billion.
Newport Corp. reported net sales of about $603 million in 2015 and net income of about $31 million. The combined company is expected to have about $1.4 billion in pro forma annual revenue, based on the companies’ 2015 annual reports.
MKS said it anticipates $35 million in cost savings within three years of the acquisition and that the merged company should have strong cash flow and be able to quickly eliminate any acquisition-related debt.
