REG - Gooch & Housego PLC - Acquisition of Artemis Optical

Gooch & HousegoAnnouncement

19/07/2023 07:00

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RNS Number : 4953G  Gooch & Housego PLC  19 July 2023

 

 For release at 7.00 am  19 July 2023

 

Gooch & Housego PLC

("G&H" or the "Company" or the "Group")

 

G&H Enhances Coatings Expertise with the Acquisition of Artemis Optical

 

 

Gooch & Housego PLC (AIM: GHH), the specialist manufacturer of optical
components & systems, announces that it has entered into a conditional
agreement to acquire the entire issued share capital of Artemis Optical
Holdings Ltd ("Artemis") for a total consideration of up to £8.9 million.
This acquisition further enhances G&H's product portfolio and creates new
opportunities for vertical integration and the cross selling of our combined
capabilities.

 

Artemis is a thin-film coating company renowned for its expertise in a variety
of cutting-edge applications. It is recognised as a global leader in designing
advanced optical filters for tailored electro-optical systems and laser
protection, as well as bespoke head-up display combiners. Artemis also works
with its customers to develop customised, system-enabling optical filters,
mirrors and pioneering helmet mounted display patches. Artemis' products cater
to the diverse needs of customers primarily in Aerospace & Defence as well
as in the Industrial and Life Sciences markets.

 

Artemis operates from a modern facility near Plymouth in the UK and employs
around 40 people. The newly acquired site will serve as a centre of excellence
to coordinate the  development of new coatings across G&H and a hugely
complementary fit to the Group's existing extensive coating capabilities.

 

This acquisition, which is aligned to G&H's new strategy, provides the
Group the opportunity to offer both substrates and coating materials of the
highest quality that perfectly align with their application or product
requirements. By applying G&H's resources, expertise, and worldwide reach
Artemis will be able to access new customers and territories for its
capabilities.

 

 

Charlie Peppiatt, Chief Executive Officer of Gooch & Housego, commented:

 

"The addition of Artemis' coatings expertise to G&H's capabilities was
identified in our new strategy as one of the opportunities to deliver
sustainable margin growth for the Company. Artemis' renowned excellence in
thin-film coatings complements our existing capabilities to enable us to
deliver advanced photonics technology and unparalleled value for our
customers. Together, we are well-positioned to accelerate our customer focused
innovation plans and create a better world with photonics."

 

 

Terms of acquisition

 

The total consideration payable for Artemis by G&H is up to £8.9 million.
This comprises an initial cash consideration of £4.5 million, funded from
existing resources, together with £2.4 million of new G&H ordinary shares
to be satisfied by the issue of 412,088 new G&H ordinary shares. There is
a deferred contingent cash consideration of up to £2.0 million, payable based
upon Artemis' performance in the two years ending 31 July 2025. The
acquisition is expected to complete on 21 July 2023.

 

In its financial year ended 31 March 2023 Artemis' revenue was c.£4.3 million
and adjusted EBITDA was c.£0.7 million. As at the end of June 2023 Artemis
had gross assets of c£3 million.

 

This acquisition is expected to be marginally earnings enhancing in the first
full financial year of G&H's ownership.

 

 

 

 

For further information please contact:

 

 Charlie Peppiatt, Chief Executive Officer                  Gooch & Housego PLC      +44 (0) 1460 256440

 Chris Jewell, Chief Financial Officer

 Mark Court / Abigail Gilchrist                             Buchanan                 +44 (0) 20 7466 5000

 G&H@buchanan.uk.com (mailto:G&H@buchanan.uk.com)

 Christopher Baird / David Anderson                         Investec Bank plc        +44 (0) 20 7597 5970

 

 

Notes to editors

 

1.     Gooch & Housego is a photonics technology business
headquartered in Ilminster, Somerset, UK with operations in the USA and
Europe. A world leader in its field, the company researches, designs,
engineers and manufactures advanced photonic systems, components and
instrumentation for applications in the Aerospace & Defence, Industrial,
Life Sciences and Scientific Research sectors. World leading design,
development and manufacturing expertise is offered across a broad range of
complementary technologies.

 

2.     All financial information included in this announcement is sourced
from unaudited management accounts and excludes any specific items. This
announcement contains certain forward-looking statements that are based on
management's current expectations or beliefs as well as assumptions about
future events.  These are subject to risk factors associated with, amongst
other things, the economic and business circumstances occurring from time to
time in the countries and sectors in which G&H operates.  It is believed
that the expectations reflected in these statements are reasonable but they
may be affected by a wide range of variables which could cause actual results,
and G&H's plans and objectives, to differ materially from those currently
anticipated or implied in the forward-looking statements.  Investors should
not place undue reliance on any such statements. Nothing in this announcement
should be construed as a profit forecast.

 

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