NOVEMBER 1--StockerYale (Salem, NH, USA; www.stockeryale.com), an independent provider of photonic-based products, has acquired privately held Photonic Products (Stansted, UK), a provider of laser diode modules and laser diodes for industrial, medical, and scientific markets, for $9.4 million in cash, stock, and bonds. This strategic acquisition will significantly broaden StockerYale's product portfolio of laser modules, will increase StockerYale's 2006 pro forma revenues by approximately 50%, and is expected to substantially improve the profitability and cash flow of the company on a consolidated basis. The acquisition is expected to accelerate overall growth and to be immediately accretive to earnings.
Photonic Products manufactures custom-designed electro-optical subassemblies and optoelectronic components, based on semiconductor laser diode technology, for OEM manufacturers. In addition, the company is a distributor of high-performance industrial laser diodes, including blue-violet, red and infrared laser diodes from Sanyo, Sony, and Opnext and high-performance optical lenses from Panasonic.
This year, Photonic Products received the Queen's Award for Enterprise: International Trade. Current management, led by Tony Pope, founder and managing director, and Damon Cookman, director of operations, will continue to manage the business.
"With this acquisition, StockerYale's laser sales will double and our opportunity for future sales is considerably greater due to a more diversified laser product portfolio, multiple cross-selling opportunities, and access to new markets for each other's products," said Mark W. Blodgett, chairman and chief executive officer. "We expect that there will be significant cost savings accruing to StockerYale thanks to Photonic Products' laser diode distribution business, as well as the opportunity to combine marketing efforts."
