Jul 26 2010
Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) (the “Company” or “Advanced Energy”) today announced that the Company has entered into an agreement to sell its Aera® mass flow control and related product lines and real property in Japan to Hitachi Metals, Ltd., part of Hitachi Metals Group, for $44 million in cash, subject to adjustment based on the inventory balance at closing.
Subject to the satisfaction of customary closing conditions, the Company anticipates the closing of this transaction within the third quarter of 2010.
"The sale of our Aera mass flow controller product line represents a significant step in our strategy to focus our global resources on power conversion,” said Dr. Hans Betz, Chief Executive Officer of Advanced Energy. “Our core technology portfolio in power conversion for the semiconductor, flat panel display, solar panel and other thin film markets as well as grid-tied PV inverters is the foundation of our long-term growth strategy. These markets provide tremendous growth opportunities as we continue to develop technologies and scale our business to address them.”
At closing, the Company will transfer substantially all of the assets associated with the Aera product lines to Hitachi Metals, Ltd., which will assume certain related liabilities as well as global sales for the Aera product lines. During a transition period, the Company has agreed to provide manufacturing support and certain other services to enable Hitachi Metals, Ltd. to complete the transition without interruption in business flow. Both companies will work to maintain the highest quality service and support throughout the transition for customers using the Aera flow products. It is also contemplated that Hitachi Metals, Ltd. will leverage the Company’s worldwide service infrastructure and have the Company become an authorized service provider for Hitachi Metals, Ltd. to service products in all countries other than Japan.
“Hitachi Metals, Ltd. is a highly capable materials manufacturer, and the Aera product lines are complementary to their current business. We are working together to ensure a seamless transition for our mass flow control customers worldwide,” continued Dr. Betz.
“We are very pleased to add the high-quality Aera product line to our product portfolio,” said Mr. Hiroyuki Fujii, Executive President of Hitachi Metals, Ltd. “This acquisition increases our industry presence in these strategic markets. Advanced Energy has built a great reputation in the semiconductor, flat panel display and solar panel market, and it is our honor to acquire these products and carry forward the strong heritage of the Aera product line.”
The Aera product lines had sales of $11.9 million in the first quarter of 2010 and $15.1 million in the second quarter of 2010. As a result of the sale, the Company's assets are classified as held for sale on the balance sheet as of June 30, 2010, and results from continuing operations will be reduced by the revenue and costs associated with the mass flow controller business and will be included in the discontinued operations line on the income statement.
Source: http://ir.advanced-energy.com/