GSI Group has sold its JK Lasers business to Trumpf subsidiary, SPI Lasers, for $31.5 million in cash, subject to customary purchase price adjustments. The purchase will provide an expanded product range and will see SPI Lasers move into the field of multi kW systems, as well as utilising a number of additional JK Lasers products to enhance their levels of vertical integration.
JK Laser produces high power fibre lasers for industrial use, primarily to machine manufacturers for additive manufacturing and laser cutting applications. Headquartered in Rugby, UK, the company has annual sales of €17.6 million, and has around 100 employees worldwide.
SPI Lasers CEO Dr Christian Schmitz stated: ‘We are very excited about the prospects ahead as we blend the considerable talents and technology of SPI Lasers and JK Lasers. Our focus of course remains on putting our customers at the heart of everything we do, producing high quality, reliable and flexible lasers designed to suit their needs.’
SPI Lasers has said it will continue to support and enhance many of JK Lasers existing products, ensuring their customers continue to enjoy the same quality and ease of use they have come to expect. Customers of JK Lasers have been assured that they can rely on the same personal working relationships they have experienced in the past, dealing with the same people, delivering the same quality of work.
The company is only a few hours' drive away from the headquarters of SPI Lasers in Southampton. Trumpf has said the Rugby facility will act as an additional production and development centre for fibre lasers and optical components – the combined expertise and product focus areas complement each other in many respects.
From GSI's perspective, John Roush, CEO of the GSI Group, said: ‘We decided to sell JK Lasers for an attractive valuation in order to redeploy the capital to invest in our growth strategies of building world class franchises in our core businesses, such as laser scanning and beam delivery, low power CO2 lasers, medical technologies and precision motion products. Our focus will be on both organic growth through differentiated new products, and acquisitions that improve our capabilities in target applications.’
GSI stated that the divestiture is expected to improve GSI's adjusted gross profit margins by approximately 100 basis points. The company said that while JK Lasers business generated approximately $22 million in sales in 2014, it did not have a material impact to GSI's profitability in 2014.