Chelmsford Firm Nears 4th Acquisition In 18 Months
Despite softening demand, Chelmsford-based Brooks Automation (BRKS) continued an aggressive approach to growing its share of the semiconductor market, as the company announced an imminent deal to purchase a California-based company.
Brooks, which makes automation, vacuum and instrumentation tools for the semiconductor manufacturing, life sciences, and clean energy markets, plans to purchase Crossing Automation.
'A Matter Of Adding Capabilities'
The cash sale price is $63 million, though that may be adjusted before the acquisition is finalized, Brooks said in a statement. For the 12 months that ended September 30, 2012, Crossing reported revenue of about $51 million, and generated $3 million in profits, the company said.
Brooks expected the deal to close by the end of October, and will release more details to investors during an earnings call on Nov. 8, according to a statement.
Brooks CFO Martin Headley said the Crossing deal will be the company's fourth acquisition in 18 months. Companies also recently acquired by Brooks, according to Headley, are:
-RTS Life Science Ltd., a United Kingdom-based company, in April 2011 for $3.4 million
-Nexus Biosystems Inc., a California-based company, in July 2011 for $84.9 million
-Celigo Cell Cytometer, of California, in January 2012 for $9.2 million
Headley said that the market for capital equipment that uses Brooks' products is cyclical, and demand is receding at the moment. But the acquisition serves the company's strategy to increase market share.
"It's a matter of adding capabilities to the Brooks product portfolio," Headley said.
Industry Sees Softening Demand
According to Brooks' most recent quarterly earnings report, it generated $400 million in revenue during the nine months ending June 30, dropping from $557.1 million in 2011. Net income decreased year-over-year in the same period, from $117.7 million in 2011 to $20.5 million in 2012.
Steve Schwartz, president and CEO of Brooks, pointed to the slowing semiconductor market to account for declining revenue during an earnings call in August.
"Like others in our space who have already reported earnings, we too began to see a softening of the semiconductor business starting in early June, when orders began to slow considerably," Schwartz said.
The company also saw a drop in its life sciences business, according to Schwartz.
In September, Brooks announced plans to reduce its workforce by about 150 employees, or about 10 percent, by restructuring operations in Switzerland. But through the latest acquisition, Headley said, some of Crossing's 140 full-time employees will be added to the company payroll, though he declined to say how many.
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