MKS Instruments, Inc., a global provider of technologies that enable advanced processes and improve productivity, today announced it has agreed to purchase the assets of Granville-Phillips, a division of Brooks Automation, Inc., for $87 million in cash.
Granville-Phillips is a global provider of vacuum measurement and control instruments to the semiconductor, thin film and general industrial markets, with sales of approximately $30 million in 2013. Granville-Phillips was founded in 1954, and operated as an independent company until its acquisition by Helix Technology in 1998. It became part of Brooks Automation through the merger of Helix and Brooks in 2005.
“We are very pleased to announce this acquisition,” commented Gerald G. Colella, Chief Executive Officer and President of MKS Instruments. “Granville-Phillips is an ideal complement to our vacuum gauge business, and is a business that we highly respect and know well. While we are the leader in direct pressure measurement, they are a well-regarded leader in indirect vacuum gauges, with a premium brand and an excellent reputation for quality, reliability and performance. The acquisition is well aligned with our stated strategy to grow our core semiconductor business, while diversifying into other high growth advanced markets.”
Jack Abrams, Senior Vice President Global Sales, said, “We believe we have numerous opportunities to grow the Granville-Phillips business, leveraging our existing sales channels and expanding our product portfolio. We believe we can offer a broad range of advanced vacuum gauges that will be highly responsive to the needs of customers in our served markets.”
“We see the potential for both revenue and cost synergies as we integrate Granville-Phillips into MKS,” continued Mr. Colella. “Their profitability and cash flow metrics are aligned with our own operating model, and we expect the acquisition to be accretive to our earnings in 2014. Going forward, with the revenue growth potential that we believe we can achieve with this business, as well as operating synergies to be realized over the next few years, we expect this acquisition to meet or exceed our target return thresholds.”
The acquisition is subject to regulatory approvals and other customary closing conditions and is expected to close in the second quarter of 2014.