Newport Corp. to merge with Kensington Laboratories
Newport Corp. (Irvine, CA) has signed a definitive agreement to merge with Kensington Laboratories Inc. (Richmond, CA), a privately held manufacturer of precision robotic and motion control equipment for the semiconductor and fiberoptic communications market.
Newport Corp. (Irvine, CA) has signed a definitive agreement to merge with Kensington Laboratories Inc. (Richmond, CA), a privately held manufacturer of precision robotic and motion control equipment for the semiconductor and fiberoptic communications market. The motion control equipment manufacturer will be integrated with Newport�s Industrial and Scientific Technologies Division, which develops and manufactures a complementary portfolio of components and subsystems.
The all-stock transaction will be accounted for as a pooling of interests. As a result, Newport will restate its historical financial information to include the results of Kensington for all prior periods. Kensington revenues are expected to approximate $38 million for the year 2000.
Newport corporate officers report the transaction should be immediately accretive to Newport�s 2000 and 2001 results, adding an estimated $0.10 per share to Newport�s projected 2000 earnings and an estimated $0.15 per share to its 2001 earnings. The merger, which is subject to regulatory approval and other customary closing conditions, is expected to be completed in the first quarter.
