IPG Photonics Acquires 22.5% Minority Interest in Russian Subsidiary
IPG Photonics Retakes Full Ownership of NTO IRE-Polus
OXFORD, Mass.--(BUSINESS WIRE)--
IPG
Photonics Corporation (NASDAQ: IPGP) today announced that it
purchased the outstanding 22.5% minority interest in its Russia-based
subsidiary, NTO IRE-Polus (NTO), that it previously sold to Open Joint
Stock Company "Rusnano." IPG regained complete control of NTO for $55.4
million in cash. The Company expects the transaction to be accretive
starting in the third quarter of 2012. The net income attributed to
Rusnano's non-controlling interest in NTO had resulted in a reduction to
IPG Photonics' earnings of $0.07 per diluted share in 2011 and $0.01 per
diluted share in the first quarter of 2012.
"The proceeds from the original investment in NTO by Rusnano allowed IPG
to accelerate its investment in R&D, further develop our sales and
manufacturing infrastructure in Russia, and enhance our presence in that
region by leveraging Rusnano's brand and network," said Dr. Valentin
Gapontsev, IPG's Chief Executive Officer. "Given the financial
flexibility provided by the recent secondary offering, it is now an
ideal time to regain complete ownership of our Russian subsidiary and
fully benefit from the opportunities there."
In December 2010, IPG sold a 12.5% minority ownership stake in NTO to
Rusnano, which later purchased an additional 10% in June 2011, as
permitted under the original agreement. In addition, IPG had a call
option commencing in December 2013 to buy back the minority stake at a
predetermined value and Rusnano had a put option commencing in December
2015 to sell its minority stake to IPG at a predetermined value. Under
the terms of the agreement announced today the put and call options
terminated.
About IPG Photonics Corporation
IPG
Photonics Corporation is the world leader in high-power fiber lasers
and amplifiers. Founded in 1990, IPG pioneered the development and
commercialization of optical fiber-based lasers for use in diverse
applications, primarily materials
processing. Fiber lasers have revolutionized the industry by
delivering superior performance, reliability and usability at a lower
total cost of ownership compared with conventional lasers, allowing end
users to increase productivity and decrease operating costs. IPG has its
headquarters in Oxford, Massachusetts, and has additional plants and
offices throughout the world. For more information, please visit www.ipgphotonics.com.
Safe Harbor Statement
Information and statements provided by the Company and its employees,
including statements in this press release, that relate to future plans,
events or performance are forward-looking statements. These statements
involve risks and uncertainties. Any statements in this press release
that are not statements of historical fact are forward-looking
statements. Factors that could cause actual results to differ materially
include risks and uncertainties, including risks associated with the
strength or weakness of the business conditions in industries and
geographic markets that the Company serves, particularly the effect of
economic downturns; reduction in customer capital expenditures;
potential order cancellations and push-outs and financial and credit
market issues; the Company's ability to penetrate new applications for
fiber lasers and increase market share; the rate of acceptance and
penetration of IPG's products; effective management of growth; level of
fixed costs from its vertical integration; intellectual property
infringement claims and litigation; interruption in supply of key
components, including from transportation disruptions from natural and
man-made events; manufacturing risks; inventory write-downs; foreign
currency fluctuations; competitive factors, including declining average
selling prices; building and expanding field service and support
operations; uncertainties pertaining to customer orders; demand for
products and services; development of markets for the Company's products
and services; and other risks identified in the Company's SEC filings.
Readers are encouraged to refer to the risk factors described in the
Company's Annual Report on Form 10-K (filed with the SEC on February 27,
2012) and its periodic reports filed with the SEC, as applicable. Actual
results, events and performance may differ materially. Readers are
cautioned not to rely on the forward-looking statements, which speak
only as of the date hereof. The Company undertakes no obligation to
update the forward-looking statements that may be made to reflect events
or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
IPG Photonics Corporation
Tim Mammen, 508-373-1100
Chief
Financial Officer
or
Sharon Merrill
David Calusdian,
617-542-5300
Executive Vice President
Source: IPG Photonics Corporation
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