Listed manufacturer and supplier of high technology tools and system for research and industry, Oxford Instruments, have sold its superconducting wire business in a £14 million deal.
A subsidiary of Nasdaq-listed Bruker Corporation, Bruker Energy and Supercon Technologies (BEST) has now acquired Oxford Instruments Superconducting Wire (OST) for a full cash sum of £14.13 million.
Formerly part of Oxford Instrumentsâ industrial products sector, OST supplies superconducting wire to be used in magnetic resonance imaging (MRI) scanners and other medical and scientific applications.
Based in New Jersey, the business generated a £3.4 million operating profit on revenues of £42.4 million in the year ended March 31, 2016.
Oxford Instruments said that the disposal represents the next step in the groupâs strategy of actively managing its portfolio.
Previously, the company had reported challenges within the superconducting wire markets mainly because of pricing pressures exerted by MRI system manufacturers and a declining demand for wire.
Chief Executive, Ian Barkshire, commented: “After a comprehensive review of our portfolio, the board has determined that our Superconducting Wire business is no longer core to the group’s long-term strategic vision.
“The divestment will allow increased focus across the group on our chosen market segments and the cash proceeds will enable us to reduce our net debt, in line with our strategy to deliver enhanced shareholder value.”
Earlier in the month, Oxford Instruments reported a 3.7% fall in H1 adjusted profit before tax.
The interim dividend stood at 3.7 pence per share, while the company expected a benefit from currency of approximately £7 million to operating profit in 2017/18 financial year.
Adjusted profit before tax down 3.7 pct; reflecting lower sales in OI Healthcare and continued weakness in Superconducting Wire. The company expects to deliver a current year performance in line with last year Source text for Eikon: Further company coverage: (Bengaluru Newsroom)