Newport Corporation Completes Sale of Hilger Crystals to Dynasil Corporation
IRVINE, Calif., July 20 /PRNewswire-FirstCall/ -- Newport Corporation (Nasdaq: NEWP) today announced that it has completed the sale of the stock of its Hilger Crystals subsidiary to Dynasil Corporation (OTC Bulletin Board: DYSL), a provider of technology, products, services and solutions in the medical, industrial and homeland security/defense markets.
Hilger, based in Margate, UK, manufactures and sells a variety of synthetic crystals and detectors, imaging arrays and materials, primarily for x-ray detection applications. Under the terms of the transaction, Newport received $4.0 million in cash at closing. In addition, if the Hilger Crystals business achieves certain specified sales targets in the 18 months following the closing, Newport will receive up to $750,000 of additional cash.
Newport expects to record a charge in the second quarter of 2010 of approximately $0.8 million relating to deal costs and a pension curtailment expense associated with this business. In the third quarter of 2010, Newport expects to record a gain on the sale of this business that will be substantially offset by additional charges relating to the termination of Hilger's pension plan. Hilger Crystals' revenues were $2.0 million in the full year 2009 and $1.5 million in the first half of 2010. The company will provide additional information regarding the transaction in its conference call on July 28, 2010, regarding Newport's second quarter operating results.
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