Orbotech Ltd., Israel, announces that SPTS Technologies Group (SPTS), U.K., an Orbotech company and supplier of advanced wafer processing solutions, has sold its Thermal Products business to SPP Technologies Co. (SPT), a subsidiary of Sumitomo Precision Products Co. SPT specializes in the production, sales, and support of 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,” says Kevin Crofton, President of SPTS and Corporate Vice President at Orbotech. “Divestment will benefit SPTS by enabling us to focus resources on our core Advanced Packaging, MEMS, RF, and Power devices businesses.”
According to Toshihiro Hayami, President of SPT, “This acquisition will allow us to expand the product portfolio, create a footprint in the global semiconductor capital equipment industry, and establish a worldwide presence for our company.”
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
