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23 Jun 16. Bombardier to get $1bn investment from Quebec. Canadian aircraft maker Bombardier Inc said on Thursday the government of Quebec agreed to invest $1bn in its C series aircraft program.
The company said it would transfer the assets, liabilities and obligations of the program to a newly created limited partnership, in which Bombardier will hold a 50.5 percent equity stake and Quebec the rest. (Source: Reuters)
21 Jun 16. OSI Systems Enters into Definitive Agreement to Acquire American Science and Engineering.
• Acquisition enhances OSI Systems’ security platform with leading backscatter X-ray inspection technology and services for critical security end markets.
• Expected to be accretive to fiscal year 2017 non-GAAP diluted earnings per share excluding one-time transaction expenses and integration costs; at least 10% accretive to fiscal year 2018 GAAP diluted earnings per share.
OSI Systems, Inc. (OSIS) has signed a definitive agreement to acquire American Science and Engineering, Inc. (“AS&E”) (ASEI), a leading provider of detection solutions for advanced cargo, parcel, and personnel inspection, for $37.00 per share in cash, representing a total purchase price of approximately $187m, net of $82m of AS&E cash and cash equivalents as of March 31, 2016. The transaction has been unanimously approved by the OSI Systems and AS&E Boards of Directors. The closing of the transaction, anticipated during OSI Systems’ fiscal second quarter ending December 31, 2016, is subject to the approval of AS&E’s shareholders, antitrust approval, and other customary closing conditions.
Deepak Chopra, OSI Systems’ Chairman and Chief Executive Officer, said, “The acquisition of AS&E will be the most significant security acquisition in our Company’s history and we believe represents an excellent strategic fit consistent with our expansion strategy. AS&E’s backscatter X-ray technology has long been a leader within the security industry, and its cutting-edge products, extensive service network, and premier customer base are highly complementary to our current operations. We look forward to welcoming AS&E’s talented team to OSI Systems.”
“We are very pleased to join OSI Systems,” said Chuck Dougherty, President and Chief Executive Officer of AS&E. “The capabilities of our respective organizations are extremely well-matched. We expect our customers and employees to benefit substantially from the combination of our technology-driven businesses.”
The transaction is expected to result in at least $18m of annual pre-tax cost synergies within the first two years post-closing. These synergies include the benefits of optimizing global business development and administration, manufacturing and supply chain infrastructure, as well as the elimination of redundant public company costs. The transaction is expected to be accretive to OSI Systems’ fiscal year 2017 non-GAAP diluted earnings per share excluding one-time transaction expenses and integration costs and at least 10% accretive to OSI Systems’ fiscal year 2018 GAAP diluted earnings per share.
OSI Systems expects to fund the acquisition with a combination of balance sheet cash and borrowings from its existing $450m credit facility. Pro forma for the acquisition, OSI Systems is anticipated to have a leverage ratio of 2.1x trailing 12 months pro forma adjusted EBITDA as of March 31, 2016, excluding anticipated annual cost synergies. OSI Systems expects continued strong cash flow generation from the combined business.
“The acquisition of AS&E represents a strategic deployment of capital to generate additional shareholder value,” said Alan Edrick, OSI Systems’ Executive Vice President and Chief Financial Officer. “The co