Semiconductor company MKS Instruments, Inc. (NASDAQ: MKSI) recently acquired the Granville-Phillips division of rival Brooks Automation, Inc. (NASDAQ: BRKS). Subject to regulatory approvals, the $87-million deal is expected to close in the second quarter of 2014.
Granville-Phillips was formed in 1954. The formerly independent company was acquired by Helix Technology in 1998 and later merged with Brooks in 2005.
With annual revenues of roughly $30 million in 2013, the division provides vacuum measurement and control instruments to the thin film, semiconductor and general industrial markets. Despite being a profitable business, it no longer matches Brooks' strategy of focusing on core semiconductor and life sciences market segments.
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The division is expected to merge well with MKS Instruments' vacuum gauge business. The deal will enable the company to foray further in the semiconductor market along with other high-growth advanced markets.
The acquisition is expected to be accretive to MKS Instruments' earnings in the forthcoming quarters. MKS Instruments reported strong results for the fourth quarter of 2014, with adjusted earnings per share of 42 cents, beating the year-ago earnings by a whopping 320%. Revenues for the quarter also increased 53% year over year to $204.4 million.
MKS Instruments provides instruments, subsystems and process control solutions required to measure, control, power, monitor and analyze parameters of manufacturing processes and helps to improve process performance and productivity.
With a market capitalization of $1.7 billion, MKS Instruments has a Zacks Rank #3 (Hold). Some better-ranked stocks worth a watch in the industry include Tessera Technologies Inc. (NASDAQ: TSRA) and Ultra Clean Holdings Inc. (NASDAQ: UCTT). Both the stocks sport a Zacks Rank #1 (Strong Buy).
BROOKS AUTOMATN (NASDAQ: BRKS): Free Stock Analysis Report
MKS INSTRUMENTS (NASDAQ: MKSI): Free Stock Analysis Report
TESSERA TEC INC (NASDAQ: TSRA): Free Stock Analysis Report
ULTRA CLEAN HLD (NASDAQ: UCTT): Free Stock Analysis Report
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