Bridgepoint is to sell SPTS Technologies Group, a global manufacturer of etch, deposition and thermal processing equipment for the microelectronic industry, to Orbotech. The business is being sold for approximately $370 million in cash.
Bridgepoint today announces that it has agreed to sell SPTS Technologies Group (“SPTS” or “the Company”), a UK-based leading global manufacturer of etch, deposition and thermal processing equipment for the microelectronic industry, to Orbotech Ltd. Under the terms of the agreement, Orbotech will acquire SPTS for a total consideration (including repayment or assumption of debt) of approximately $370 million in cash.
SPTS designs, manufactures, sells and supports advanced capital equipment which, as part of the production process for microchips, is used to deposit and remove materials from semiconducting wafers. Its largest and fastest growing markets are the structurally growing niches of advanced microchip packaging and the manufacture of ultra-small mechanical sensors (micro-electro mechanical systems, “MEMS”) that are used in smartphones, tablet computers, and game consoles. The Company operates across 19 countries in Europe, North America and Asia-Pacific, with manufacturing facilities in Newport, Wales, Allentown, Pennsylvania, and San Jose, California.
In recent years, the business has broadened the application of its technology to Advanced Packaging, the next generation technology that allows multiple chips to be stacked and connected, thereby improving performance and reducing production costs. SPTS is now a leading supplier in this space and well positioned in this high growth market.
Christopher Bell, partner at Bridgepoint, said:
“Leadership of high growth niches as well as the application of its technology to emerging niches in the microchip industry have made SPTS strategically attractive. SPTS is a global business with 65% of system revenues outside Europe. With its new shareholder, the business will be well positioned to combine expertise in micro manufacturing to advance further. This has been a successful investment for Bridgepoint and we wish the team continued success in the future.”
Asher Levy, Chief Executive Officer of Orbotech Ltd. commented:
“Orbotech identified Advanced Packaging as a strategic and natural extension of its business into an adjacent high growth market, where SPTS is a recognized technology leader. SPTS benefits from established, long-standing partnerships with major industry players. It is a well-known and highly respected brand with deep domain expertise in those segments in which it operates. Acquiring SPTS accelerates our expansion into Advanced Packaging, with multiple manufacturing solutions ideally suited for this growing segment. We look forward to welcoming the SPTS team to Orbotech and capitalizing on the best of both companies for continued success.”
Bill Johnson, Chief Executive Officer of SPTS, said:
“This transaction combines two high quality businesses with leadership positions in their markets. SPTS has strong positions in the sectors in which it operates, and a global customer base in end markets poised for long term growth, in particular Advanced Packaging. The combination of SPTS and Orbotech will create a stronger business with an enhanced customer offering and geographical footprint.”
Kevin Crofton, President and Chief Operating Officer of SPTS, said:
“This is an exceptional opportunity to bring together two proven leaders both operating at the cutting-edge of consumer electronics manufacturing. We share a common vision for our respective markets, including an uncompromising commitment to our customers. Together, we will be a powerhouse of expertise in micro manufacturing, providing a broad solution set of mission-critical capabilities to serve designers and manufacturers across the dynamic electronics industry landscape. We are excited about the opportunity to leverage Orbotech’s strong presence in the Pacific as well as its products and technologies”.
The sale of SPTS will bring total cash proceeds realised from Bridgepoint portfolios in the year to date to c. €x billion.
Advisers for Bridgepoint included:
• M&A: Jefferies and Ernst & Young
• Commercial DD: McKinsey
• Financial DD: Ernst & Young
• Legal: Travers Smith
• Environmental DD: ERM
Advisers for Orbotech included:
•M&A: J.P. Morgan
For further information:
Tel: +44 207 432 3555 or Mob: + 44 7802 259761
Tel: +44 207 457 2821 or Mob: + 44 7769 255 380
Tel: +44 207 457 7904
Bridgepoint is a major international private equity group focused on acquiring well‐managed mid‐cap companies in attractive markets with the potential to grow organically or through acquisition. These companies are typically valued between €200 million and €1 billion. In addition, the Group also has a separate lower mid‐cap business (Bridgepoint Development Capital) which focuses on the acquisition of companies typically valued between €50 million and €200 million. Bridgepoint is especially interested in acquiring businesses with strong market positions and earnings growth potential where significant additional value can be created through expansion and operational improvement. The Firm invests in six principal sectors: business services, consumer, financial services, healthcare, manufacturing & industrials and media & tech. Bridgepoint has offices throughout Europe in Frankfurt, Istanbul, London, Luxembourg, Paris, Stockholm as well as portfolio development office in Shanghai. See www.bridgepoint.eu.
Orbotech Ltd. (NASDAQ: ORBK) has been at the cutting edge of the electronics industry supply chain, as an innovator of enabling technologies used in the manufacture of the world’s most sophisticated consumer and industrial products, for over 30 years. The Company is a leading provider of yield-enhancing and production solutions, primarily for manufacturers of printed circuit boards, flat panel displays and other electronic components. Today, virtually every electronic device is produced using Orbotech technology. The Company also applies its core expertise and resources in other advanced technology areas, including character recognition for check and forms processing and solar photovoltaic manufacturing. Headquartered in Israel and operating from multiple locations internationally, Orbotech’s highly talented and inter-disciplinary professionals design, manufacture, sell and service the Company’s end-to-end portfolio of solutions for the benefit of customers the world over.