5th Apr 2005 07:02
Oxford Instruments PLC05 April 2005 Tuesday 5th April 2005 Oxford Instruments strengthens its leadership of the microanalysis market Oxford Instruments plc ("Oxford Instruments", the "Company"), the advancedinstrumentation company, announces today that it is has agreed to acquire HKLTechnology A/S (HKL), a leading manufacturer of Electron BackScatter Diffraction(EBSD) systems, based in Hobro, Denmark. HKL will become part of the OxfordInstruments Analytical (OIA) business. Oxford Instruments will pay an initial cash consideration of Euro 3m, plus adeferred cash consideration of up to a maximum of Euro 1m. The Company willacquire all of the share capital on completion. The acquisition is expected tobe earnings enhancing for the year to 31st March 2006. HKL sales to year-end31st December 2004 were Euro 2.5m on which a positive operating profit was made. HKL, led by Niels-Henrik Schmidt, will provide Oxford Instruments with aworld-class development team and considerable expertise in EBSD producttechnology. Oxford Instruments' global sales and service infrastructure willfully exploit HKL's capabilities, adding a significant competitive advantagethat will give OIA's microanalysis suite of systems a market leading position. EBSD is used to produce a microstructural analysis of a material. Thisinformation can be used to predict the properties such as corrosion behaviour,creep, fatigue life, cracking and failure mechanism. It is used in a widevariety of industries - aerospace, automotive, defence, semiconductors, powerplants, and chemical plants. It is used, for example, in failure analysis, tocheck that engine components are protected from corrosive environments that cancause fatigue and cracking. Its use minimises material wastage and maintenancecosts, and maximises durability and safety. Nigel Keen, Chairman of Oxford Instruments said: "Following the recentsuccessful integration of the Metorex acquisition into our Analytical business,the acquisition of HKL continues our drive to deliver the high calibre productsand services demanded by our customers. The combination of HKL's leadingtechnology and Oxford Instruments' strength in the microanalysis market isexpected to lead to significant growth opportunities for both businesses. Oxford Instruments is issuing two further announcements today: the tradingupdate for year ended 31st March 2005 and the appointment of Jonathan Flint asChief Executive. Enquiries: Oxford Instruments plc 01865 881437Nigel Keen, ChairmanMartin Lamaison, Financial Director Hogarth Partnership Limited 020 7357 9477Rachel HirstAndrew JaquesEdward Westropp Notes to Editors Oxford Instruments plc Oxford Instruments is a worldwide leader in advanced instrumentation. It is arecognised leader in several high technologies, including the application ofsuperconductivity, the creation of low temperatures, and the production anddetection of X-rays. The Company's products are used around the world inscientific research, industrial chemical analysis and quality control, andsemiconductor processing. Its customers include most of the world's majorinternational companies, as well as leading research institutes anduniversities. Born out of Oxford University, with over 40 years of continuous productdevelopment, Oxford Instruments comprises of two business groups: Analytical andSuperconductivity. The combined strengths of both groups mean that OxfordInstruments is well positioned to take advantage of exciting and innovativeopportunities in existing and new markets. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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