Rofin-Sinar Agrees to Acquire Baasel Lasertech Group

In a move to consolidate its position in the industrial laser market, Rofin-Sinar Technologies Inc. (Plymouth, MI) subsidiary Rofin-Sinar Laser GmbH (Hamburg, Germany) has signed a definitive agreement to acquire a controlling interest in Carl Baasel Lasertechnik GmbH (Munich, Germany) and its worldwide subsidiaries from parent company Mannesmann Demag Krauss-Maffei AG (MDKM).

Under the agreement, Rofin-Sinar will acquire 90.01% of the share capital of Carl Baasel Lasertechnik GmbH for $40 million in cash. Rofin-Sinar will also arrange refinancing of Baasel Lasertech Group's projected debt of approximately $24.3 million. In addition, the company has assumed the rights and obligations of MDKM with respect to the purchase of the remaining 9.99% interest in Baasel Lasertechnik Group. The transaction is subject to approval by the supervisory board of MDKM. The acquisition, which is expected to close later this month, will be accounted for as a purchase transaction with effect from January 1, 2000.

Rofin-Sinar expects to finance the transaction from existing cash balances and borrowings under committed lines of credit with German Banks. The company intends to refinance the acquisition purchase price with the proceeds of a share offering in the German capital markets later this year.

Focused on laser systems for marking, cutting, welding, perforation, and medical applications, Baasel Lasertech Group produced around 800 lasers in 1999. In 1999, Carl Baasel Lasertechnik GmbH and its consolidated subsidiaries had revenues of $53.4 million (audited) and its unconsolidated subsidiaries had revenues of approximately $4.5 million (unaudited).

Edited by Kristin Lewotsky