REG - Gooch & Housego PLC - Acquisition of Phoenix Optical

Gooch & HousegoAnnouncement

30/10/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241030:nRSd1981Ka&default-theme=true

RNS Number : 1981K  Gooch & Housego PLC  30 October 2024

     30 October 2024

 

Gooch & Housego PLC

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

 

G&H Extends its Precision Optics Capabilities in A&D with the

Acquisition of Phoenix Optical

 

Gooch & Housego PLC (AIM: GHH), the specialist manufacturer of optical
components & systems, announces that it has acquired UK-based Phoenix
Optical ("Phoenix") for a total consideration of up to £6.75 million. This
acquisition extends G&H's precision optics capabilities in its Aerospace
& Defence markets and creates new opportunities for the cross selling of
the combined capabilities.

 

From its facilities in St. Asaph, North Wales, Phoenix supplies polished,
coated and assembled precision optics to customers around the world. The
company has one of the largest diamond turning facilities in Europe, as well
as on site capabilities for the moulding and annealing of glass.

 

In line with G&H's strategy of 'speed to value' acquisitions, Phoenix
provides the Group with the opportunity to expand and accelerate its reach in
the UK and European Aerospace & Defence markets. Phoenix and G&H share
complementary specialist capabilities in precision optics, allowing us to
serve a broader customer base with a comprehensive portfolio whilst achieving
synergies from sharing our combined manufacturing capacity and optical systems
engineering expertise in St Asaph where we already have our Optical Systems
Innovation Centre.

 

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

 

"I am delighted to welcome Phoenix to the G&H Group. Phoenix is a highly
capable, well-regarded UK precision optics supplier with a strong portfolio of
products and services. Together we will be able to better serve our customers'
most complex optical systems requirements. The combination of the Phoenix and
G&H teams brings together industry leading technology and know-how with
efficient scalable operations that will support G&H to deliver an
exceptional customer experience and accelerate our journey towards sustainable
margin growth."

 

Terms of acquisition

 

The Company has acquired the entire issued share capital of Fawkes Newco 2
Limited, a newly established holding company of the Phoenix Optical group of
companies. The total consideration payable for Phoenix by G&H is up to
£6.75 million. This comprises an initial cash consideration of £3.4 million,
funded from existing resources. There is a deferred contingent cash
consideration of up to £3.35 million, payable based upon Phoenix's
performance in the three years ending 30 June 2027.

 

In its financial year ended 30 June 2024 Phoenix's revenue was c.£6.6 million
and its reported EBITDA was c.£0.4 million. As at the end of June 2024
Phoenix had gross assets of c.£4.4 million.

 

 

For further information please contact:

 

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

 Chris Jewell, Chief Financial Officer

 Mark Court / Sophie Wills / Abigail Gilchrist              Burson 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.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQMMBFTMTJJMRI