REG - Gooch & Housego PLC - Acquisition of Global Photonics

Gooch & HousegoAnnouncement

14/05/2025 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:20250514:nRSN6099Ia&default-theme=true

RNS Number : 6099I  Gooch & Housego PLC  14 May 2025

     14 May 2025

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR. Upon the publication of this announcement this inside information will be
considered to be in the public domain

 

 

Gooch & Housego PLC

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

 

Acquisition of U.S.-based Global Photonics

 

 

Gooch & Housego PLC (AIM: GHH), the specialist manufacturer of optical
components & systems, announces that it has agreed to acquire U.S.-based
Global Photonics for a total consideration of $17.5 million. The acquisition
is expected to be marginally earnings enhancing in the current financial year
and increasingly earnings enhancing thereafter(2).

 

This acquisition significantly extends G&H's presence in the U.S.
Aerospace & Defence market and marks an important step towards replicating
the success of the Group's optical systems hub in the UK by establishing a
full optical systems engineering and manufacturing capability in the United
States.

 

Global Photonics, which is based near Tampa, Florida, supplies optical systems
for military land applications, including periscopes and fire-control systems,
as well as instrumentation for air platforms and other advanced precision
optics. Its expertise in cleanroom lithography, photolithographic reticle
fabrication, ion beam etching and advanced thin film coatings will complement
G&H's existing manufacturing capabilities and enhance the Group's offering
into the North American market.

 

The transaction represents another 'speed to value' acquisition by G&H.
The acquisition allows us to support the Global Photonics team with the wider
capabilities of G&H particularly in the areas of laser protection
filtering and complex optical system design allowing them to secure further
business through their existing strong reputation and well-established
relationships with U.S. defence prime contractors.

 

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

 

"Global Photonics is a strong strategic and operational fit for G&H,
bringing deep application expertise, strong relationships with U.S. defence
primes and complementary manufacturing capabilities to our growing Optical
Systems division. This acquisition accelerates our plan to become the partner
of choice for high-precision optical systems in both the UK and the U.S. and
opens exciting new growth channels in North America.

 

"The establishment of a full optical systems engineering and manufacturing
capability in the U.S. for the Aerospace & Defence market mirrors our
successful strategy for the U.S. healthcare sector with the recent opening of
our G&H Innovation Hub for Life Sciences in Rochester NY."

 

 

Terms of acquisition

 

The total consideration payable by G&H for the entire issued share capital
of Global Photonics is $17.5 million on a debt/cash free basis. This comprises
cash consideration of $8.75 million, funded from existing resources, together
with $8.75 million of new G&H shares to be satisfied by the issue of new
G&H ordinary shares, the number of which will be determined based upon the
market price of G&H shares in the ten days prior to the completion of the
acquisition. A Lock In deed will be executed on completion of the transaction
requiring the shares to be held for a period of not less than one year.

 

Completion of the acquisition is expected in the coming few weeks subject to
customary closing conditions.

 

In its financial year ended 31 December 2024, Global Photonics' revenue was
c.$11.1 million and its adjusted EBITDA was c.$1.8 million. As at the end of
December 2024 Global Photonics had gross assets of c $4.1 million.

 

 

The person responsible for arranging the release of this announcement on
behalf of the Company is Chris Jewell, Chief Financial Officer.

 

 

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 U.S. 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.

 

3.     Gooch & Housego will publish its interim results on 3 June
2025.

 

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  ACQAIMATMTJBMFA