Cognex Corporation has officially completed the sale of its Surface Inspection Systems Division (SISD) to AMETEK, Inc. on July 6 for $160 million in cash, subject to customary working capital and other purchase price adjustments.
Cognex, which initially agreed to sell the division in June, expects to report a pre-tax gain from the transaction of approximately $125 million in Q3 2015, and to report the financial results of SISD for Q2 2015, which ended on July 5, as a discontinued operation.
"The sale of our Surface Inspection Systems Division is a strategic decision for us," said Robert J. Willett, President and CEO of Cognex in a previous press release. "SISD is a profitable and well-managed business, but it does not fit Cognex's long-term objectives and business model. With this sale, we can focus all of our efforts on discrete manufacturing where we see continued strong growth for our vision and ID products."
The sale of SISD will be discussed in an upcoming quarterly earnings conference call hosted by Cognex on Monday, August 3 at 5:00 PM Eastern Time. The number is (866) 256-9239, or 703) 639-1213 if outside the United States. A replay will begin that night at 8:00 PM and will run continuously until 11:59 PM ET on August 6. The telephone number for the replay is (888) 266-2081, or 703) 925-2533 if outside the United States The access code for both the live call and the replay is 1657881.
In 2014, the surface inspection division account for $60 million in sales, or 12% of Cognex’s total revenue. The division develops and manufactures software-enabled vision systems used to inspect surfaces of continuously processed materials for flaws and defects. Applications and markets include metals, paper, nonwovens, plastics, and glass.
The SISD business joins AMETEK’s Electronic Instruments Group (EIG), which had 2014 sales of $2.4 billion.
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