Bruker Advanced Supercon, Inc. Acquires ACCEL Research Instruments Business from Varian Medical Systems
Acquisition Transforms Bruker Advanced Supercon Business into Global Leader in Superconducting Devices, Superconductors and Advanced Technologies for Alternative Energy Research and Next-Generation Energy Infrastructure.
BILLERICA, Mass. — April 3, 2009 — Bruker Advanced Supercon, Inc. (Bruker) today announced that it has closed the acquisition of the research instruments portion of Varian Medical Systems’ ACCEL Instruments GmbH subsidiary in Bergisch-Gladbach, Germany.
Varian acquired ACCEL, including both its businesses in research instruments (RI) and proton therapy, in January 2007. In the transaction announced today, Varian is retaining the proton therapy business, which will now operate as Varian Particle Therapy, while Bruker has acquired substantially all of the assets of the RI business. The asset deal, which was signed by Bruker and Varian in February 2009, closed on April 1, 2009. Financial terms of the transaction were not disclosed.
The RI business acquired by Bruker is a world leader in the development and manufacturing of a wide variety of advanced superconducting and other subunits and systems for physics and energy research, plus other scientific applications. RI products include electron and ion LINACs, superconducting and normal conducting accelerator cavities, insertion devices, other accelerator components, neutron source subunits, specialized superconducting magnets, superconducting (HTS and LTS) devices, X-ray and particle beamlines, as well as vacuum and cryosystems.
ACCEL Instruments GmbH was founded in 1993 by Dr. Udo Klein and Dr. Michael Peiniger, as a spin-off from Siemens AG. Bruker has retained Dr. Klein and Dr. Peiniger as managing directors and minority shareholders in the newly acquired RI business, which has been sub-divided into two new Bruker subsidiaries:
- RI Research Instruments GmbH is focusing on rf cavities and systems, linear accelerators, and special products for physics and energy research. It is 45% owned by its management team, and 55% by Bruker.
- Bruker Advanced Supercon GmbH is focusing on low and high temperature superconducting devices, circular accelerator vacuum systems, beamlines, and X-ray optics businesses, as well as specialty superconducting magnets for physics, energy research, medical devices, crystal growth applications, etc. It is 100% owned by Bruker.
Dr. Burkhard Prause, Chief Executive Officer of Bruker Advanced Supercon, Inc., explained: "This acquisition opens an important new chapter in the history of our Bruker Advanced Supercon business. It positions us for rapid revenue and margin growth in several exciting markets, including renewable energy research, the more stable and energy efficient electricity grids of the future, next-generation materials research and manufacturing, as well as components for cutting-edge medical devices. Bruker plans to expand our new business in growth markets such as HTS superconducting fault current limiters for energy grid stabilization, crystal growth magnets for next-generation semiconductors, and superconducting devices and other core RI technologies for large-scale scientific and energy research facilities. We also expect to continue to supply OEM products to Varian in support of its proton therapy business for advanced cancer treatment."
Mr. Tom Rosa, Senior Vice President and Chief Financial Officer of Bruker Advanced Supercon, Inc., added: “On an annualized basis, our newly acquired superconducting devices and energy research systems business is expected to generate revenue of greater than $25 million in year one, with near break-even results, and with significant growth potential in future years. The Bruker Advanced Supercon business is the smallest division of Bruker Corporation today, but we have ambitious plans for profitable growth, supported by global trends in energy research, scientific infrastructure investments, and recent advances in materials and medical sciences.”
Mr. Joerg Laukien, Chairman of Bruker Advanced Supercon, Inc., concluded: “The acquisition announced today provides our Bruker Advanced Supercon business with significant additional catalysts for profitable growth in complementary markets, and transforms Bruker into a broad-based global leader in superconducting devices, superconductors and advanced technologies for alternative energy research and next-generation energy infrastructure.”
About Bruker Advanced Supercon:
The Bruker Advanced Supercon subsidiary of Bruker Corporation (NASDAQ: BRKR) includes operations in Germany, in the UK and in the United States, plus the newly acquired ACCEL RI business. Bruker EAS GmbH in Germany manufactures and sells over 20,000 miles of niobium-titanium (NbTi) and niobium-tin (Nb3Sn) LTS wire annually. Bruker HTS GmbH in Germany is a leading manufacturer of both 1G BSSCO and 2G YBCO HTS materials and devices, based on its broad HTS technology platform. Bruker HTS solutions enhance the reliability and efficiency of electrical power grids and large energy demanding applications. Its proprietary SuperFast™ superconducting fault current limiter (SFCL) has the potential to enhance power grid reliability, and its HTS current leads can dramatically reduce electrical losses in large industrial and research magnets. Conductors and components made by Bruker HTS are being used to build new generations of compact high power devices such as HTS motors, generators, cables and transformers, as well as high field magnets for medical and research applications. Hydrostatic Extrusions Ltd. in the UK offers the light-weight Cuponal™ conductor for the aviation industry. Bruker Advanced Supercon, Inc. opened business development and customer support operations in the U.S. in 2008. For more information: www.advancedsupercon.com or www.bruker.com.
Bruker Forward Looking Statements:
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to adverse changes in conditions in the global economy and volatility in the capital markets, the integration of businesses we have acquired or may acquire in the future, changing technologies, product development and market acceptance of our products, the cost and pricing of our products, manufacturing, competition, dependence on collaborative partners and key suppliers, capital spending and government funding policies, changes in governmental regulations, intellectual property rights, litigation, and exposure to foreign currency fluctuations. These and other factors are identified and described in more detail in our filings with the SEC, including, without limitation, our annual report on Form 10-K, our most recent quarterly reports on Form 10-Q and our current reports on Form 8-K. We disclaim any intent or obligation to update these forward-looking statements other than as required by law.
Burkhard Prause, Ph.D.
CEO, Bruker Advanced Supercon, Inc.
Managing Director, Bruker HTS and Bruker EAS
Tel: +49 (0)6181 4384-4101