International law firm Dorsey & Whitney LLP advised Orbotech Ltd. (NASDAQ: ORBK) on the signing of a definitive share purchase agreement to acquire SPTS Technologies Group Limited (“SPTS”), a U.K.-based leading manufacturer of etch, deposition and thermal processing equipment for the microelectronics industry, from European private equity firm Bridgepoint and others.
Israel's Orbotech makes automated optical inspection systems for producers of electronic components such as printed circuit boards and flat panel displays. SPTS creates machinery used in the production of semiconductors, many of which find their way into smartphones and tablets. SPTS has manufacturing facilities in Newport, Wales, as well as San Jose, California, and Allentown, Pennsylvania. In 2014, SPTS is expected to generate revenue of $180 million and a gross margin of 48 percent of its revenue. The acquisition of SPTS is expected to be accretive to Orbotech's adjusted earnings immediately after closing, and Orbotech estimates that post closing, it will have $100 million of cash.
The transaction and related financing are expected to close in the third quarter of 2014, with the purchase – involving payments of approximately $370 million – to be financed through cash and approximately $300 million of debt.
London Corporate Partners Barry Glazer and Max Beazley led a Dorsey team acting as co-counsel to Orbotech. Orbotech was also advised by Israeli law firm Tulchinsky Stern Marciano Cohen Levitski & Co. and (in connection with the financing elements) by Cravath, Swaine & Moore LLP. Travers Smith LLP advised Bridgepoint.
Dorsey & Whitney Advises Orbotech Ltd. on Acquisition of SPTS Technologies Group Limited
July 10, 2014