Coherent – Rofin struck with a $942 million deal

Rofin-Sinar Technologies Inc., a laser-products company contending with a harsh proxy fight, has struck a $942 million deal for a sale to Coherent Inc.

The $32.50-a-share deal provides a 42% premium to Rofin-Sinar’s Wednesday closing price of $22.91. Rofin-Sinar shares were slightly above the deal price in recent-after hours trading, rising 44% to $33.

Rofin-Sinar will postpone its annual meeting, which had been scheduled for Thursday.

Coherent expects the deal to close within six to nine months, and expects it to add to earnings per share in the first full year after closing.

Coherent said the purchase will strengthen its position in materials processing. It expects about $30 million of annual savings within 18 to 24 months of closing.

Coherent’s laser products are used for a wide range of applications including defense, graphic arts, life sciences and materials processing. For the year ended Oct. 3, the Santa Clara, Calif., company had net sales of $802.5 million.

Rofin-Sinar, which has operational headquarters in Plymouth, Mich., and Hamburg, Germany, posted net sales of $519.6 million for the year ended Sept. 30. It serves the semiconductor, automotive, machine-tool and solar sectors, among others.

Source: WSJ

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