Friday, October 10, 2008

GSI Group sells optic unit for $21M

Laser systems maker GSI Group Inc. has sold its General Optics business unit to U.K-based optical components maker Gooch & Housego plc for $21 million.

According to officials at Bedford-based GSI Group (Nasdaq: GSIG), the General Optics unit is located in Moorpark, Calif. Formerly headquartered in Billerica, GSI Group moved to Bedford in June. GSI Group announced its intentions to purchase Bedford’s Excel Technology Inc. for $32 per share, or approximately $360 million in an all-cash deal, in July. GSI said it would pay for Excel through a combination of available cash and outside financing, and entered into agreements with various investors to provide $210 million in financing for the transaction by issuing senior unsecured notes and warrants.

Sergio Edelstein, president and CEO of GSI, said at the time the purchase would expand GSI’s presence in the markets the company finds most attractive. GSI supplies laser-based precision technology to the global medical, electronics, and industrial markets and semiconductor systems. Excel makes laser-based systems and electro-optical components primarily for industrial and scientific applications.

GSI reported a profit of $19 million for fiscal 2007, on revenue of $317.8 million.