Oxford Instruments plc Acquisition of Platinum Medical Imaging
Oxford Instruments plc ("Oxford Instruments"), a leading provider of high technology tools and systems for industry and research, announces the acquisition of Platinum Medical Imaging LLC ("Platinum").
Platinum is being acquired from its management for an initial debt free, cash free consideration of US$18 million with a deferred element of up to US$37 million payable over three years dependent on its performance over that period.
Platinum is an established US company providing high quality parts and services for MRI (Magnetic Resonance Imaging) and CT (Computed Tomography) medical imaging instruments. Ithas 33 staff across two sites in Florida and California who sell parts, carry out repairs and do system rebuilds. There is a growing opportunity in this third party service market in the US as healthcare reforms encourage medical imaging facilities to move to more cost effective service providers.
After adjusting for non-recurring items Platinum generated EBIT of $2.3 million in the twelve months to 31 December 2010 from revenues of $14.1million. At 31 December 2010 Platinum had gross assets of $3.6 million.
The acquisition will be funded from existing facilities and is expected to be EPS enhancing in the current year.
The combination of Platinum with Oxford Instruments' existing MRI Service businesses in North America significantly strengthens the Group's Service Sector by providing broader service offerings and the opportunity for the further development of global service.
Commenting on the acquisition, Jonathan Flint, Chief Executive of Oxford Instruments, stated:
"This acquisition, which is the first within our Service Sector, is consistent with our 14 Cubed objectives to target 14% compound annual revenue growth and return on sales of 14% by 2014. MRI service is the cornerstone of our Service sector and with Platinum, our position is substantially strengthened in the US market."