Newport Corp. to Buy Part of French Firm

Newport Corp. said Monday that it will pay $70 million in cash to acquire certain assets of a French industrial instruments manufacturer in a deal that will double the size of the Fountain Valley firm.

Newport Corp.’s Dutch subsidiary will acquire Micro-Controle S.A.’s mechanical instrumentation unit, which makes products for the semiconductor industry and other businesses, as well as for Micro-Controle’s own microscope and precision materials divisions, and certain design and sales offices.

“They are strong in industrial instruments and we are strong in laboratory research instruments,” said Robert C. Hewitt, senior vice president of Newport Corp. “It is a good fit and gives us broader access to more markets.”

Hewitt said the deal will also position Newport Corp. to compete in Western Europe after the unification of markets there in 1992.

The acquisition will nearly double Newport Corp.’s sales of $59 million last year and increase its work force from 400 to about 800 people, Hewitt said.

Micro-Controle, based in Evry, France, markets its precision instruments to industrial testing firms, research laboratories and aerospace companies. Hewitt said he expected the deal, which is subject to regulatory approvals, to close in May.

“We see great possibilities in combining Micro-Controle’s system solutions with Newport’s marketing skills in order to serve worldwide markets,” Jean Delage, chairman and co-founder of Micro-Controle, said in a statement.

Last week, Newport Corp. said it acquired a 29% stake in ILX Lightwave Corp. of Montana.

NEWPORT CORP.’S PERFORMANCE

In the second quarter ended Jan. 31, Newport Corp. reported net income of $1.1 million as its revenues rose 2% to $14.7 million.

Figures are in millions.

2nd Qtr 2nd Qtr 12 Months 12 Months 1990 1989 1990 1989 Revenue $14.7 $14.4 $29.6 $28.2 Net income (loss) $1.1 $1.1 $1.6 $2.3

Source: Newport Corp.