Jul 1, 2009

Newport Corporation on an Asset Swap with Oclaro, Inc.

Headwaters MB, now Capstone Partners, announced that it advised Newport Corporation (Nasdaq: NEWP) on an exchange of assets and cash with Oclaro, Inc. (Nasdaq: OCLR). Under the terms of the transaction, Newport acquired Oclaro’s New Focus(TM) business, which comprises a portfolio of high-performance photonics products including opto-electronics, high-resolution actuators, opto-mechanics, tunable lasers, vacuum and ultraclean solutions and OEM-engineered solutions. Simultaneously, Oclaro acquired Newport’s high-power diode laser manufacturing operations, located in Tucson, Arizona, and received $3 million in cash.

This transaction allows Newport Corporation to further strengthen its market leadership in the photonics industry and positions Oclaro to better leverage its existing semi-conductor fabrication capabilities. It presents a win-win scenario for both companies.

Grant GarbersFormer Managing Director, Capstone

As part of the transaction, the two companies entered into a supply agreement in which Oclaro will provide high-power diodes to Newport for incorporation into its Spectra-Physics laser products. Both companies will provide transition-related services to the other during an integration period of six to twelve months.